American Stock Exchange (AMEX)

Definition

The American Stock Exchange (AMEX), now known as NYSE American, is a platform for trading equities, options, and exchange-traded funds (ETFs) in the United States. It is one of the primary stock exchanges in the country and was historically known for listing smaller companies compared to those listed on the New York Stock Exchange (NYSE). The AMEX has historically been associated with a wide variety of innovative financial products.

History

Origins and Early History

The American Stock Exchange was founded in 1908 as the New York Curb Market Agency. The term “curb trading” referred to its original location: traders would gather on the curb outside the NYSE to trade stocks that were not listed on the NYSE. The name “Curb” reflected the fact that trading took place literally on the edge of the street, at 23 Wall Street. The exchange had a somewhat informal atmosphere relative to the NYSE, which was more established and rigid.

Formal Establishment

In 1921, the New York Curb Market moved indoors, which marked a significant transformation in its operations and professionalism. This transition to a formal trading floor located at 86 Trinity Place in Manhattan allowed for better organization and regulation of transactions. Subsequently, in 1953, the exchange rebranded itself as the American Stock Exchange to better reflect its expanded operations and national significance.

Innovations and Products

AMEX has been noted for pioneering various innovative financial instruments and trading practices. It introduced the first equity options trading program in 1975, which marked a significant evolution in financial markets by allowing investors to hedge risks and speculate on stock movements. Furthermore, AMEX was instrumental in the development of exchange-traded funds (ETFs), launching the first ETF in 1993—a product that would eventually revolutionize global investment strategies.

Acquisition by NYSE Euronext

In 2008, the American Stock Exchange was acquired by NYSE Euronext, which operates the New York Stock Exchange. Under new ownership, AMEX continued to operate as a distinct market but gradually took on the new moniker—NYSE American. The acquisition aimed to leverage the strengths of both exchanges and offer a broader range of financial products and trading services.

Current Name and Operations

Today, the American Stock Exchange is known as NYSE American. It continues to serve as a platform for trading equities, options, and ETFs, maintaining its historical focus on smaller-cap companies and innovative securities. NYSE American has retained its reputation for flexibility and innovation, and it continues to support a diverse range of financial products.

For more information, you can visit the NYSE American website.