AMEX

AMEX - The American Stock Exchange is an auction market where prices for a diverse array of products--stocks, options, exchange traded funds (ETFs) and structured products--are determined by public bids to buy and offers to sell. By centralizing order flow on the trading floor, giving public orders priority, and executing orders by price and time sequence regardless of size or source, investors trade on a level playing field and are ensured the best available price.

This sophisticated market structure supports the three primary goals of the Amex:

Trading must be...

Liquid -- Under normal circumstances, investors should be able to buy and sell reasonable volumes of securities (the market should have depth) at prices at or near previous trades (the market should have continuity). Also, under normal circumstances, there should be enough liquidity to reduce volatility, resulting in an orderly market.

Efficient -- Trading on the Exchange should be transacted at the lowest possible cost to the investor. Because buyers and sellers at the Amex can trade directly with each other, spreads are narrowed, resulting in a lower total execution cost for small and large investors.

Fair -- At the Amex, the interests of investors come first--they should always get the best price available. As a result, the market is structured to provide transparency, which means all buying and selling in a security is conducted at one location, in the open, so that all buyers and sellers have an equal opportunity to receive the best price.

AMEX can also refer to American Express. More information on AMEX Credit Cards.