# American Stock Exchange History: From AMEX to NYSE American

## What Was the American Stock Exchange (AMEX)?

The American Stock Exchange (AMEX) was once the third-largest [stock exchange](https://www.investopedia.com/articles/basics/04/092404.asp) 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](https://www.investopedia.com/terms/e/euronext.asp) acquired the AMEX. In the subsequent years, it also became known as NYSE Amex Equities and NYSE MKT.

### Key Takeaways

*   The American Stock Exchange, initially known as the New York Curb Exchange, transitioned into the AMEX and was a key player in the introduction of new financial products like options and ETFs.  
    
*   Acquired by NYSE Euronext in 2008, the AMEX is now called NYSE American, primarily catering to small-cap stocks with a fully electronic trading platform.  
    
*   The history of the AMEX is deeply rooted in the development of American financial markets, having started with informal curbside trading in the late 18th century.  
    
*   NYSE American is notable for providing a platform for younger, entrepreneurial companies that may not meet the stringent requirements of larger exchanges like the NYSE.  
    
*   The use of designated market makers on the NYSE American ensures liquidity and stability despite its focus on smaller-cap stocks and lower trading volumes compared to larger exchanges.  
    

## Exploring the Role and Innovations of the 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](https://www.investopedia.com/terms/o/option.asp) market in 1975. Options are a type of [derivative](https://www.investopedia.com/terms/d/derivative.asp) 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.

> **Important**
>
> 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)](https://www.investopedia.com/terms/e/etf.asp). The ETF, now a popular investment, is a type of security that tracks an [index](https://www.investopedia.com/terms/i/index.asp) or a basket of assets. They are much like mutual funds but differ in that they trade like stocks on an exchange.

AMEX became known for listing companies that couldn't meet NYSE's stricter requirements. Today, a good portion of trading on the NYSE American is in [small-cap](https://www.investopedia.com/terms/s/small-cap.asp) stocks. It operates as a fully electronic exchange.

## The Evolution of the American Stock Exchange (AMEX)

AMEX originated in the late 18th century as the American trading market was evolving. Without a formal exchange, [stockbrokers](https://www.investopedia.com/terms/s/stockbroker.asp) traded in coffeehouses and on the street. For this reason, the AMEX became known at one time as the New York Curb Exchange.

Traders who initially met on New York streets were called 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.

In the 19th century, this type of curbside trading was [informal and quite disorganized](https://www.investopedia.com/articles/07/stock-exchange-history.asp). In 1908, the New York Curb Market Agency was established in order to bring rules and regulations to trading practices.

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.

## Key Factors and Advantages of Listing on NYSE American

Over 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](https://www.investopedia.com/terms/b/bluechip.asp) companies. Compared to the NYSE and [Nasdaq](https://www.investopedia.com/terms/n/nasdaq.asp), the NYSE American trades at much smaller volumes.

These factors may cause concerns about investors' ability to quickly trade some securities. 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](https://www.investopedia.com/terms/m/marketmaker.asp).

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](https://www.investopedia.com/terms/b/bid-askspread.asp) 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](https://www.investopedia.com/terms/l/liquidity.asp) and an orderly market.

> **Article Sources**
>
> 1.  The New York Times. "[NYSE to Acquire American Stock Exchange](https://www.nytimes.com/2008/01/17/business/apee-nyse.html)."
>     
> 2.  New York Stock Exchange. "[American Stock Exchange Historical Timeline](https://www.nyse.com/publicdocs/American_Stock_Exchange_Historical_Timeline.pdf)," Page 2.
>     
> 3.  New York Stock Exchange. "[American Stock Exchange Historical Timeline](https://www.nyse.com/publicdocs/American_Stock_Exchange_Historical_Timeline.pdf)," Page 1.