American Stock Exchange

In a country, the term ‘stock market' suggests a physical location for buying and selling stocks, moreover, an overall activity of market. So, the state of stock market is a pointer to the activity of several stock exchanges. New York Stock Exchange, American Stock Exchange, and NASDAQ are the big guns in U.S. In a country, there can be many stock exchanges as it is simply a term for the physical location for trading stocks.

Investing Around The World

One can buy or sell stocks on any one of the stock exchanges scattered throughout the world. What matters is only the time of work as it varies from exchange to exchange like NYSE and NASDAQ operate from 9:30 am to 4:00 pm Eastern Time, Monday through Friday. Also in Hong Kong Stock Exchange, it is between 9:30 pm and 4:00 am New York time.

Let's have a look at the locations of major stock exchanges of the world- Japan (Tokyo Stock Exchange), India (Bombay Stock Exchange), Europe (London Stock Exchange, Frankfurt Stock Exchange, SWX Swiss Exchange), People's Republic of China (Shanghai Stock Exchange). American Stock Exchange is also among these major exchanges.

Fluctuations

Stock market depends on the economic condition of the concerned country and it becomes bullish when the condition is perfectly good. Whereas, a downfall in the economic condition brings the bear markets when inflation and unemployment rise, stock prices fall. Supply and demand also determine Stock price fluctuations and it heavily banks upon investor psychology. A stock price rise can really make the investors interested to buy and a fall in price will have a vice versa effect. These are what we know as short-term fluctuations. Well, when we talk about the investment, stock exchange is just one of those opportunities through which people can invest. Apart from that, other popular markets include the Foreign Exchange Market (FOREX), the Futures Market, and the Options Market. However, amongst the stock exchanges, American Stock Exchange is a name of well repute .

FOREX: World's Largest Market

FOREX traders buy 1 currency against another and at the same time they are placed in a position to profit from small changes in currency value being the biggest investment market. As far as this market is concerned, the traders are in a real need to have a vigilant eye on the market for undertaking profitable trades.

The Futures Market

Futures market refers to the market of contracts for buying and selling goods having specified prices and times. This market is in being as buyers and sellers of goods wish to lock in prices for future delivery. Actually, the market conditions sometimes fluctuate things. However, the investors in this market love the profit that can be realized from trading the contracts.

The Options Market

A quite similar one to that of the futures market as an option is basically a contract and these options are to be purchased as a form of insurance against price fluctuations.

Stocks: Low Risk, Long-Term

These markets can be quite deceptively dangerous without a profound experience. Whereas, stocks are of less risk for its gradual movement and these are mostly viewed as long term investments. In this context, American Stock Exchange deserves its mention.

The stock exchange situated in New York is known as the AMEX or the American Stock Exchange . It basically is a mutual concern, the ownership being vested in its members. Till 1929, the AMEX was also popular as the New York Curb Exchange .

The American Stock Exchange commenced its operations long back during the times of the colonies when the brokers actually went ahead and made a security market for themselves for dealing in Govt. stocks. The AMEX began in 1842 at the Exchange Place on Broad Street . At that time, most of the stock brokers assembled at various places, at times even braving the weather, to put up a list of various stocks they offered for sale. With the passage of time, due to popularity and shouting of the brokers to sell commodities, stock hand signals were brought into the picture to enable the brokers to carry on trading. It was only in 1921 that the stock market was shifted into a building in Manhattan at Trinity Place , which also is its present location. But even years after being shifted indoors, the hand signals did not give up. In 1978, the particular building was announced to be one of National importance, and a landmark in the history.

Market

From trading in merely stocks, the market of the American Stock Exchange has expanded and now includes trading and exchange in funds as well, though mid-cap shares are still traded too. In the mid-1990's, allegations were put up against AMEX for improper methods of trading, and ‘ Business Week ' in 1999 confirmed the fact. The AMEX amalgamated with the National Association of Securities Dealers [NASD] in the year 1998, and came up with “ The Nasdaq-Amex ” group market which entitles AMEX to be in independent control of the parent company of NASD. In 2004, after some mutual differences, AMEX acquired NASD and vested in itself all the control.

Of the top 3 stock exchanges situated in America , AMEX is distinctly known as the one having the most lenient rules for listing by companies, which is mainly because the companies listed with it are the smaller ones, as compared to the listings of the New York Stock Exchange [NYSE] as also the NASDAQ. Besides, AMEX also deals in hybrid securities and trades in ETF's. Most of the listings of ETF in the US are traded at AMEX.

In 2005, the AMEX tried to get an income trust of Canada , which was basically American, popular. They listed income-hybrid stocks which are famous as securities of income-deposit. They are listed on the AMEX as B&G Food Holding Corporation, Centerplate Inc., Otelco Inc. and Coinmach Service Corporation. Of late, the Coinmach Service corp. has tried to discontinue as a trust of income.

The listings on AMEX include BTI [British American Tobacco], IMO [Imperial Oil Limited], BIO [Bio-rad Labs] and SEB [Seaboard Corp.] The last-mentioned one has not split the shares right since its public listing, and the market value of these shares as on 29-10-2007 was $1,640.

The Inter@ctive Week Index is the one that displays the live indices of the stock market AMEX. Of late, the Intellidexes has been developed by the AMEX, in an attempt to produce alpha by weighing securities of some basic basis. The index of all the stocks listed is reflected in the AMEX Composite, which created a record of a close at 2,069.16points on 30-11-2006.

Being close to the WTC, operations of the AMEX were slightly affected after the 9/11 attacks when operations were shifted to the stock exchange of Philadelphia for that time.