Investing For Beginners – Free Investment Articles and Tutorials

The American Stock Exchange, or AMEX, is a stock exchange that is operated by American Stock Exchange LLC, a subsidiary of the National Association of Security Dealers. Located in New York, the American Stock Exchange is one of the many exchanges in the United States that has had continued success since the earliest days of the colonial expansion.


At that time, stock brokers created outdoor markets to trade new government securities with each other in order to build on the success of their companies. The AMEX started out on the concrete curb of Broad Street and was nothing but a makeshift auction for trading. Street brokers gathered around trashcans and mailboxes, even in the coldest weather to put up their stocks for sale.

Over the years, the trading activity on the AMEX became bigger and bigger. America was on the rise! Some stockbrokers can still remember having to raise their voices over the crowds of traders in the streets. They can remember how the noise would get so loud that they had started to use hand signals in order to be capable of making their trades.

In 1921 the AMEX experienced a great landmark achievement when it moved its activities indoors and the hand signals could be made in an air-conditioned environment! AMEX still resides in the same building today and those hand signals are officially known amongst all professional traders.

In 1998, the AMEX got together with the creators of NASDAQ to create “The Nasdaq-Amex Market Group”. This made AMEX is an independent entity but it gave them the advantage of having the NASDAQ as their parent company.

Today, AMEX is known to have the most liberal policies and most of its companies are smaller than the NYSE and NASDAQ. Next to the New York Stock Exchange and the NASDAQ, AMEX is considered one of the strongest securities exchanges in the world. AMEX has taken its hits over the years but it has proven itself again and again and will continue to be a trading giant for many years to come.

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