The American Stock Exchange aka AMEX is third largest stock exchange in United States. It is located in New York City and handles nearly 10% of traffic for all American trades. With its less stringent listing requirement, this platform is best suited for younger small-cap companies. It is primarily known for trading in small cap stocks, options, and exchange traded funds.
From its very inception, the American Stock Exchange has acted as an accompaniment to the larger New York Stock Exchange. It primarily lists stocks and other securities that were unable to meet NYSE standards. Through the years the exchange has been through a continuous process of transitions and is currently a division of the NYSE.
New York Curb Market Agency was formed in 1908 to organize trading practices. It was renames as New York Curb Exchange in 1929. It adopted the name American Stock Exchange in 1953. Finally, the exchange was acquired by NYSE Euronext in 2008 and renamed to NYSE Amex Equities in 2009 and finally NYSE MKT LLC in 2012. At the time of the acquisition, trading values were estimated between 30 million and 40 million shares per day with 1,700 actively traded issues.
The American Stock Exchange historically traded securities that were unable to meet the more rigorous listing requirements of the New York Stock Exchange. As a result, many of the securities that have been traded are for smaller companies. Options and American Depository Rights( ADRs), marketable securities that have been traded on behalf of foreign companies, are also traded on AMEX.