Suddenly, the Amex Is Popular Again

Uncertain economic times have been a boon for the American Stock Exchange.

While other exchanges have seen a big decline in equity listings so far this year amid volatility in the stock market, the Amex has been on a roll.

At the end of August, the exchange had listed 42 new companies, compared to just 24 at the same point last year. Meanwhile, the New York Stock Exchange saw its new listings drop to a meager 32 from 80 at the end of August last year. The Nasdaq has seen a similar drop-off, with just 38 new listings compared to 60 for the same period last year.

What's going on? Paul Dorfman, managing director of Issuer Services at Amex, said the exchange's lower listing fees are attracting more companies in a still-uncertain economy. The Amex charges just $35,000 for an initial listing, compared with $150,000 at the NYSE and $100,000 at the Nasdaq. The Amex also charges much smaller annual fees.

But the Amex is also gaining ground in its niche market -- the small- and micro-cap arena, Dorfman said. So far this year, the exchange has listed about 10 precious metals stocks, including companies like Minefinders(MFN Quote), IAMGold (IAG Quote) and Eldorado Gold (EGO Quote), which are also listed on the Toronto Stock Exchange. "We've really captured the lion's share of small, growing gold companies predominantly from Canada," he said. "These companies are now getting exposure to the U.S. investor market via an Amex listing."

Although initial public offerings have been down this year by as much as 50%, Dorfman said IPOs on other exchanges have fallen even more. Many of the new Amex listings this year have come from companies upgrading from the pink sheets or from other exchanges.

Although the Amex has had trouble in the past attracting and holding large, quality equity listings, some say recent scandals at the NYSE, including the latest imbroglio surrounding Chairman Dick Grasso's retirement package, could have an impact. But officials at the Amex say they are really focusing on the exchange's niche area.

That strategy has reaped nice rewards for investors this year. The American Stock Exchange Composite index is up 20% so far, compared to a 16% gain for the S&P 500.