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Finance Dictionary and Glossary of Investment Terms
American Stock Exchange
AMEX. The second-largest stock exchange in the U.S., after the New York Stock Exchange (NYSE). In general, the listing rules are a little more lenient than those of the NYSE, and thus the AMEX has a larger representation of stocks and bonds issued by smaller companies than the NYSE. Some index options and interest rate options trading also occurs on the AMEX. The AMEX started as an alternative to the NYSE. It originated when brokers began meeting on the curb outside the NYSE in order to trade stocks that failed to meet the Big Board’s stringent listing requirements, but the AMEX now has its own trading floor. In 1998 the parent company of the NASDAQ purchased the AMEX and combined their markets, although the two continue to operate separately. also called The Curb.
Originally founded on the streets of lower Manhattan, the Amex specializes in newer firms that don''t qualify for the New York Stock Exchange''s capital and other requirements. Specialties include energy companies, foreign companies and biotechnology concerns.