American Stock Exchange - AMEX

  

Categories: Investing, Trading

The AMEX is a stock exchange, which is a place where securities can be bought or sold. The AMEX happens to be the third-largest stock exchange in the U.S. and it's a private intentionally non-profit company.

About 15% of all trades in the U.S. are made through the AMEX, and its competitive brethren are NYSE and NASDAQ.

Related or Semi-related Video

Finance: What is Electronic Communicatio...12 Views

00:00

Finance a la shmoop what is the electronic communication network or ECN?

00:09

all right it's the computerized and wired version of this for a small fee [Large computer network]

00:15

traders can plug in to a network to trade stocks you know think about it

00:20

like Facebook for stock traders only with less political ranting and fewer

00:24

photographs of babies and freshly cooked meat generally well generally speaking [A pan of meat and potato's appear]

00:29

ECNs are "off-market" that is they aren't really directly part of

00:35

an established trading system like the New York Stock Exchange or Nasdaq or one

00:39

of the other blessed exchanges they connect market makers directly to third

00:44

parties allowing them to trade to their heart's content there aren't a lot of

00:48

actual physical hands at work here most of the limit orders are matched

00:53

electronically the network charges its fee the transaction is processed and [Company share price appears]

00:58

life moves on so think about it like it's 2:00 a.m. on a Saturday and Joe who

01:03

likes to trade in his underwear don't ask us why it's just dying to sell a [Joe sits down at PC]

01:07

hundred shares of coke to Betty who likes to trade while head-banging to Led

01:12

Zep and you know likes to trade with Achmed who's saving money for an air

01:17

conditioner yeah well no sweat so this is perfect for anyone who wants to

01:21

become active in the trading of stocks but hates any kind of physical human [Man waving to woman and woman walks by]

01:26

interaction yeah don't worry the robot rebellion will soon be upon us and ECNs

01:31

will rule the roost

Up Next

Finance: What are Insider Trading And the Securities Fraud Enforcement Act Of 1988?
11 Views

What is insider trading and the Securities Fraud Enforcement Act of 1988? It's nothing too complicated, if this minute long video is any indication.

Finance: What are the NASDAQ and NYSE?
74 Views

What are NASDAQ and the NYSE? NYSE stands for New York Stock Exchange, and NASDAQ is more or less a component of this. The stock exchange is where...

Finance: What are Exempt Securities and Transactions?
2 Views

What are Exempt Securities and Transactions? Exempt securities aren’t registered with the SEC. Usually this is because they are issued and backed...

Finance: What is The Securities Amendments Act Of 1975?
9 Views

The Securities Amendments Act of 1975 created a national market clearing system to standardize stock prices and transaction costs from state to state.

Find other enlightening terms in Shmoop Finance Genius Bar(f)