The American Stock Exchange started as an alternative to the New York Stock Exchange. It originated when brokers began meeting outside the New York Stock Exchange in order to trade shares in companies that failed to meet the NYSE’s onerous listing requirements. In 1998, NASDAQ purchased the American Stock Exchange, though the two continue to operate as separate entities.

To qualify for trading on the AMEX, a company must meet all of the minimum requirements in one of the following categories:

Standard 1

• shareholders’ equity of $4 million
• pre-tax income of $750,000
• $3.00 share price
• market value of $3 million for publicly held shares
• either:
a) 800 public shareholders holding 500,000 shares;
b) 400 public shareholders holding 1,000,000 shares; or
c) 400 public shareholders holding 500,000 shares and having an average daily trading volume of 2,000 shares for the prior six months

Standard 2

• shareholders’ equity of $4 million
• two year operating history
• $3.00 share price
• market value of $15 million for publicly held shares
• either:
a) 800 public shareholders holding 500,000 shares;
b) 400 public shareholders holding 1,000,000 shares; or
c) 400 public shareholders holding 500,000 shares and having an average daily trading volume of 2,000 shares for the prior six months

Standard 3

• shareholders’ equity of $4 million
• pre-tax income of $50 million
• market value of $15 million for publicly held shares
• either:
a) 800 public shareholders holding 500,000 shares;
b) 400 public shareholders holding 1,000,000 shares; or
c) 400 public shareholders holding 500,000 shares and having an average daily trading volume of 2,000 shares for the prior six months

Standard 4

• either:
a) market capitalization of $75 million; or
b) total assets and revenue of $75 million each
• pre-tax income of $50
• $3.00 share price
• market value of $20 million for publicly held shares
• either:
a) 800 public shareholders holding 500,000 shares;
b) 400 public shareholders holding 1,000,000 shares; or
c) 400 public shareholders holding 500,000 shares and having an average daily trading volume of 2,000 shares for the prior six months

For more information, visit the AMEX’s website at www.amex.com.