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.

Related sites:

Note: Pages will open in a new browser window

• Nasdaq home page
• AMEX home page
• NYSE home page

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