AMEX and Nasdaq discussing possible merger
March 12, 1998
Web posted at: 4:35 a.m. EST (0935 GMT)
NEW YORK (CNN) -- CNN has learned that the Nasdaq Stock Market and the American Stock
Exchange are discussing a possible merger. The move would be a direct attack
against the much larger and more powerful New York Stock Exchange which has the
30 Dow Industrial stocks among its Big Board listings.
Many of the details of the merger remain unclear, but a possible early scenario
might create a holding company under which the two exchanges would continue to
operate independently of each other.
A merger between the two markets would provide a huge boost for each. The Nasdaq
Stock Exchange has grown rapidly but its image has suffered from allegations of
price fixing and collusion. The American Stock Exchange has failed to attract
the technology companies that have fueled Nasdaq's growth.
The New York Stock Exchange has managed to lure companies away from the other two
exchanges, thus increasing its prestige.
The New York Stock Exchange and the American Stock Exchange both
operate on an "open cry" system, while the Nasdaq trades stocks
over an intricate computer system.