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January 6, 2009

Glossary of Option Terms: AMEX

AMEX

Definition: American Stock Exchange.  Located in New York and handling around 10% of all securities traded in the United States, the American Stock Exchange is the third largest stock exchange by trading volume.

The AMEX was known as the "curb exchange" until 1921 and was once the strongest competitor of the NYSE.  Since then it has merged with the Nasdaq and all trading done on this exchange is in exchange-traded funds, derivatives and small-cap stocks.

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It could be the greatest tip-off of all time. The CEO of a small, fast-growing company just dipped into his own wallet to buy $4.58 million of his company’s shares… and not in some secret insider deal, but on the open market. What set off the spending spree? This CEO’s company is in a brand new federally-funded sector - one that didn’t exist seven years ago. Huge amounts of dollars are flowing in. What's more, he paid $15 a share, but the recent market swoon means you could pay as little as $12.50. This is a pure double-up situation. Keep reading... Find out more now

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