Legal Definitions - American Stock Exchange

The American Stock Exchange (AMEX or ASE) is an organized stock exchange located in New York City. It is a self-regulating organization under the Securities Exchange Act of 1934 and is engaged in national trading of corporate stocks.

The AMEX often trades in the securities of young or small companies because its listing requirements are less strict than those of the New York Stock Exchange. This means that companies that are not yet established or are smaller in size can still have their stocks traded on the AMEX.

For example, a startup company that has recently gone public may choose to list their stocks on the AMEX instead of the NYSE because they do not meet the NYSE's stricter listing requirements. This allows the company to still have their stocks traded on a national exchange and potentially gain more visibility and investors.