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American Stock Exchange: More Changes Needed in Screening Emerging Companies for the Marketplace

GGD-94-72 Published: May 25, 1994. Publicly Released: May 31, 1994.
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Highlights

Pursuant to a congressional request, GAO provided information on the American Stock Exchange's (Amex) Emerging Companies Marketplace, focusing on how Amex: (1) assesses the reputation of the management and stockholders of companies seeking a Marketplace listing; and (2) ensures that Marketplace companies meet all required criteria for approval.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
United States Securities and Exchange Commission The Chairman, SEC, should require Amex to publish a more comprehensive statement of its qualitative listing factors, including the significance of each to the final listing decisions.
Closed – Implemented
Amex has filed an amended rule with SEC and is awaiting approval. SEC approved Amex's amendments to the Marketplace on December 15, 1994. The amendments require that Amex will publish a more comprehensive statement of its qualitative listing factors, including the significance given to each factor.
United States Securities and Exchange Commission The Chairman, SEC, should require Amex to modify Marketplace rules to define the quantitative requirements warrants have to meet for listing.
Closed – Implemented
Amex has filed a revision to its rules with SEC and is awaiting approval. As part of its revised rules, Amex will define the quantitative requirements warrants have to meet for listing on the Marketplace.
United States Securities and Exchange Commission The Chairman, SEC, should require Amex to establish Marketplace rules regarding the listing and trading of units.
Closed – Implemented
Amex has filed a revision to its rules with SEC and is awaiting approval. SEC approved Amex rules to allow trading of units on the Marketplace.
United States Securities and Exchange Commission The Chairman, SEC, should require Amex to ensure that the resume for each company fully documents that all quantitative requirements have been met before a company is traded on the Marketplace.
Closed – Implemented
Amex has filed an amendment to its rules with SEC and is awaiting approval. SEC has approved Amex rules that require Amex to have documentation that all quantitative requirements have been met before a company begins trading on the Marketplace.

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Topics

Brokerage industryEligibility criteriaEligibility determinationsEthical conductSecuritiesSecurities regulationSmall businessSmall business assistanceStock exchangesElectronic countermeasures