AMEX. The second-largest
stock exchange in the U.S., after the
New York Stock Exchange (NYSE). In general, the listing rules are a little more lenient than those of the NYSE, and thus the AMEX has a larger representation of
stocks and
bonds issued by smaller companies than the NYSE. Some
index options and
interest rate options trading also occurs on the AMEX. The AMEX started as an alternative to the NYSE. It originated 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, but the AMEX now has its own trading floor. In 1998 the parent company of the
NASDAQ purchased the AMEX and combined their markets, although the two continue to operate separately.
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