American Stock Exchange

The American Stock Exchange (AMEX) is situated in New York. Initially it was owned by members as a mutual organization. Its former name, until 1929, was New York Curb Exchange. It was acquired by NYSE Eurotext on January 17, 2008. The acquisition process was completed on October 1, 2008. After the rename, the exchange is now known as NYSE Alernext U. S.

The Exchange had the 'fictional' beginning. Its history goes back to the colonial times. The stock brokers created the spontaneous outdoor markets in the New York City for the purpose of trading the new government-issued securities. AMEX began is activities in 1842 at the curbstone on Broad Street near Exchange Place. So crude was the arrangement, the brokers gathered near lamp posts and mail boxes and put up lists of stocks for sale, in extreme weather conditions. The activity increased and so also the din created by the dealers. An indigenous method of stock hand signals were introduced, a system normally understood only by the traders. In 1921, the market moved to indoor premises at 86 Trinity Place, Manhattan. The hand signals continued to be the accepted means of communication. The building was declared as a National Historic Landmark in 1978.

In the 1990s, allegations of trading scandals rocked the exchange. The Business Week highlighted the issue in 1999. AMEX merged with NASDAQ (the National Association of Securities Dealers) and a new company, "The Nasdaq-Amex Market Group" came into existence. AMEX continued to maintain its independent character with NASD as the parent company. Business tension gripped the members of the two companies and AMEX acquired control over NASD in 2004.

AMEX pursues the most liberal policies as for company listing, out of the three major American Stock Exchanges. Most of the listed companies are smaller as compared to NYSE and NASDAQ. Trading in ETFs is its specialty. The hybrid/structured securities also dominate in its trading pattern. The introduction of the internet has influenced the operations at the AMEX profoundly. It produces the all-important stock market indices. The important among these are the stocks of internet companies, styled Inte@ctive Week Internet Index. The process of modernization and addition to the statistical information continues unabated, and of late, the AMEX has developed a special set of indices known as Inellidexes, which try to gain alpha by creating indices taking into account the fundamental factors. Thus, the AMEX Composite is a value-weighed index of the total stocks listed in the exchange.

The acts of terrorism of September 11 had the telling effects on the operations of AMEX as well. The operations shifted on ad-hoc basis to the Philadelphia Stock exchange. The normal trading session begins at 9.30 a.m. to 4.00 p.m. on all days of the weeks except Saturdays and Sundays.

To add another feather to its cap in the process of innovation in providing the statistical information, the NSADAQ OMX Group Inc. launched a new service that provides free the real-time market data to millions of individual investors. With "NASDAQ Last Sale," it becomes the first US Stock exchange to provide such a facility. So, the investors have the authentic information about the last quoted price of thousands of listed shares.

Formerly, the investors had to pay for such services, now they get it free. Before, consumers got this information with access to brokerage accounts or by payment of subscription fees. Now, the entire scenario is changed. Investor wins again. The investors are able to take correct decisions with the help of latest and instant information available to them. They are able to judge the market better.

The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, and with over 3,900 companies, it is number one in worldwide listings among major markets.

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