How to Buy From the American Stock Exchange
The American Stock Exchange (AMEX) began trading operations in New York City in the 1800s. This open outcry stock exchange was acquired by NYSE Euronext and is now known as the NYSE AMEX exchange. Stocks traded on AMEX are from companies of all different sizes in a wide variety of industries. Prior to the 2008 merger, AMEX was owned and operated by the NASDAQ (National Association of Securities Dealers Exchange).
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Instructions
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Gather information on the types of stocks that are available for trading on the NYSE American Stock Exchange. NYSE AMEX lists and trades primarily mid-cap and small-cap stocks. Mid-cap stocks are generally considered medium sized companies while small cap stocks are smaller companies. For a detailed listing of stocks, see Resources section.
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Determine which stock you would like to trade. Obtain the latest news and information for this firm on the NYSE AMEX website at the link listed in the Resources Section. This link will provide price history, current prices and the latest news releases for each company listed on NYSE AMEX.
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Look at the latest share price for the NYSE AMEX Stock you wish to purchase. Based on the current stock market price, decide how many shares you wish to purchase.
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Purchase your NYSE AMEX stock through a licensed securities broker/dealer. Decide on which brokerage firm to use. You must use a broker to trade stocks on NYSE AMEX. A nonlicensed individual cannot place trades directly onto the floor of a stock exchange.
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Submit your order for NYSE AMEX stock with your broker. Once the trade is placed, the broker will confirm your trade and the detail for how many shares you purchased and at what price.
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Tips & Warnings
Full-service brokers provide the highest level of service. They contact their customers with stock ideas, monitor and recommend changes to client portfolios. This type of broker charges the highest levels of commissions for trading. Discount brokers charge mid-level commission rates for trades. Discount brokers can provide research on a stock, but not as much as a full-service broker. On-line brokers are the least expensive option, but they only provide market access. These brokers will typically charge $9 to $15 per trade.
Understand all of the risks of trading stocks before you begin trading. Only risk what you can afford to lose. There is never any guarantee that a stock will increase in value.
References
Resources
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