Founded in 1842, the American Stock Exchange (AMEX) is the "new kid" on the block in terms of traditional stock exchanges. It began its life as the New York Curb Exchange, and (as with many aspects of Wall Street) its name is literal. Trading in the so-called "Curb Market" began on the street under the window of the already established New York Stock Exchange (NYSE), then called the New York Stock & Securities Board.

The Curb Exchange, as it was also called, played a large role in the California Gold Rush of 1849, handling many businesses and financial transactions, most notably mining operations, which developed out of the gold rush.

Different Focus

Over the years, the AMEX has filled a different role than the NYSE, much as the NASDAQ has its own niche in today's stock markets. Whereas the NYSE was the larger, more established exchange featuring America's largest and more established companies, AMEX specialized in smaller, more dynamic companies. On the one hand, AMEX-listed companies might soon vanish either because of mergers or bankruptcies; and, on the other hand, could move on to the "big board," as the NYSE is called.

The Curb Market also appealed to some big corporations, many family-owned, such as Standard Oil Company and U.S. Sugar, because they were not required to file the same type of regular reports and financial information as required by the NYSE.

Moving Indoors

The exchange remained on the street until 1921 when it opened offices on Trinity Place in New York City. It was during the late 19th century when the exchange played a large part in the economic and political changes going on in the country. The growth was enough to see it through the Great Depression despite the poor economic times, the advent of government regulation, and internal scandal.

The AMEX was not given its name current name until 1953. This was under the leadership of Edward McCormick, when it became established as a major trading institution in the 1950s. With his credentials and financial experience, McCormick, who was a former commissioner of the Securities and Exchange Commission (SEC), served as the exchange's president, and was much like the prominent individuals associated with the NYSE, lending the exchange more credibility.