American Stock Exchange (AMEX), Definition

The American Stock Exchange (AMEX) is the third largest stock exchange in the United States and handles approximately 10% of all domestic securities trading. Located in New York, the exchange traces its origins to 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. Though AMEX now has its own trading floor it is sometimes referred to as the Curb Exchange. Most trading on AMEX is in small-cap stocks and derivatives. In 1998 the parent company of the Nasdaq purchased the AMEX and combined their markets, however the two exchanges continue to operate separately. See Also: Nasdaq, NYSE