what is the american stock exchange amex 
the american stock exchange amex was once the third largest stock exchange in the united states as measured by trading volume the exchange at its height handled about 10 of all securities traded in the u s today the amex is known as the nyse american in 2008 nyse euronext acquired the amex in the subsequent years it also became known as nyse amex equities and nyse mkt 1 understanding the american stock exchange amex the amex developed a reputation over time as an exchange that introduced and traded new products and asset classes for example it launched its options market in 1975 options are a type of derivative security they are contracts that grant the holder the right to buy or sell an asset at a set price on or before a certain date without the obligation to do so when the amex launched its options market it also distributed educational materials to help educate investors as to the potential benefits and risks 2 the amex used to be a larger competitor of the new york stock exchange nyse but over time the nasdaq filled that role in 1993 the amex introduced the first exchange traded fund etf the etf now a popular investment is a type of security that tracks an index or a basket of assets they are much like mutual funds but differ in that they trade like stocks on an exchange 2 over time the amex gained the reputation of listing companies that could not meet the strict requirements of the nyse today a good portion of trading on the nyse american is in small cap stocks it operates as a fully electronic exchange history of the american stock exchange amex the amex dates back to the late 18th century when the american trading market was still developing at that time without a formalized exchange stockbrokers would meet in coffeehouses and on the street to trade securities for this reason the amex became known at one time as the new york curb exchange 3 the traders who originally met in the streets of new york became known as curbstone brokers they specialized in trading stocks of emerging companies at the time many of these emerging businesses were in industries such as railroads oil and textiles while those industries were still getting off the ground 3 in the 19th century this type of curbside trading was informal and quite disorganized in 1908 the new york curb market agency was established in order to bring rules and regulations to trading practices 3 in 1929 the new york curb market became the new york curb exchange it had a formalized trading floor and a set of rules and regulations in the 1950s more and more emerging businesses began trading their stocks on the new york curb exchange the value of companies listed on the exchange almost doubled between 1950 and 1960 going from 12 billion to 23 billion during that time the new york curb exchange changed its name to the american stock exchange in 1953 2 special considerationsover the years the nyse american has become an attractive listing place for younger entrepreneurial companies some of whom are in the early stages of their growth and certainly not as well known as blue chip companies compared to the nyse and nasdaq the nyse american trades at much smaller volumes because of these factors there could be concerns that investors would not be able to quickly buy and sell some securities in the market to ensure market liquidity which is the ease at which a security can be converted to cash without impacting its market price the nyse american offers electronic designated market makers market makers are individuals or firms that are available to buy and sell a particular security as needed throughout the trading session these designated market makers have quoting obligations for specific nyse american listed companies in return for making a market for a security market makers earn money through the bid ask spread and from fees and commissions so despite the fact that the nyse american is a smaller volume exchange specializing in listing smaller companies its use of market makers enables it to maintain liquidity and an orderly market 