Tim Hanson over at the Motley Fool reported that the American Stock Exchange (AMEX) recently announced plans to try and become the exchange for micro-cap stocks. Unfortunately, I can’t find any reference to this on the AMEX site or via search engine. If anybody can provide me with the source, that would be appreciated. I have no doubt TMF is reporting correctly on the matter, it would just be great to read a press release or any other kind of announcement on the matter.
How does Hanson feel about it? He sure doesn’t pull any punches:
“Forgive me if I run screaming from the building. Why? Well, the AMEX is the least reputable of our major U.S. exchanges. It lists more than its share of questionable companies and has a long history of not delisting companies when it should.”
Nonetheless, it probably makes good business sense for the AMEX to go this route. They don’t have any hopes of competing with the NYSE or Nasdaq, especially when you consider the amount of consolidation going on amongst stock exchanges right now. It is so rampant that the Financial Times has dedicated a complete section to the matter on FT.com .
As such, it makes sense to switch focus to more than 10,000 companies listed/quoted on junior exchanges/quotation systems throughout North America. Make no mistake about it, this is a lofty goal but they are going in the right direction.
Regards,
George