The American Stock Exchange is the
third largest stock exchange in the U.S. after the NYSE and the NASDAQ,
handling approximately 10% of American trades. The American Stock Exchange lists
companies from all different industries and of all different sizes. However,
the exchange is known as having the least strict listing requirements among the
three top American exchanges, which results in many small companies joining the
exchange. Once a major competitor of the NYSE, the American Stock Exchange is
now mostly known for trading in small cap stocks, options, and exchange traded
funds. The exchange is owned by NASD (National Association of Securities
Dealers), but operated as a separate exchange from the NASDAQ.
As an auction market, the AMEX conducts
its business on a trading floor through brokers and specialists. Each security
traded on the exchange is handled by a specialist, whose job it is to bring
buyers and sellers together, and ensure that a fair market price is obtained
for both parties. It is also a specialist's job to ensure that a market remains
liquid, by buying or selling from their own account if no one else will.
Brokers move around the floor, bringing buy and sell orders to the different
specialists on behalf of their clients.
The AMEX options exchange is one of the
largest in the world, with over 1,700 options traded on stocks, American
Depository Receipts, indexes, exchange traded funds, and HOLDRS. In addition,
the AMEX has an extensive market for exchange traded funds as they were the
first to trade in this market. The AMEX has a listing of over 140 ETFs on
general stock markets, industries, corporate bond indexes and more.
For
more information, consult the AMEX website: