Tamer than the Image

In recent years, the American Stock Exchange has more than lived down its old scandal-tinted image, but Wall Street conservatives still regard the Amex as a place where speculators seek action in risky, low-priced shares. Last week, in the first study ever made of investors who actually buy and sell there, the American Exchange looked like quite a tame market place. Based on a survey of 8,000 stock trading deals last May 25--a relatively quiet day in the market--the A.S.E. reported that: > Institutions such as banks, insurance companies and pension funds--whose securities business has been heavily concentrated on the Big Board of the New York Stock Exchange--accounted for 11 % of Amex trading (compared with 31% in the latest survey of N.Y.S.E. investors). Individuals did 63% of Amex trading (as against 49% on the N.Y.S.E.) and members 26% (v. 20%). >Nearly 40% of the shares bought by the public were for long-term (six months or more) investment; only 23 1/2% were for such speculative purposes as resale within a month. By comparison, 59% of shares on the New York Exchange were bought for long-term holding, only 11% for quick resale. > 86% of Amex buyers had incomes of $10,000 a year or more while 84% of N.Y.S.E. stock buyers fell in that bracket.

Among more predictable differences, the Amex study showed that individual buyers paid cash for only 51.7% of their shares, compared with 79% on the Big Board. People over 65 make up a smaller share of the A.S.E. market (8%) than at the N.Y.S.E. (15%), as do women (19% as against 26%). Geography seems to have little influence over which market investors use. The A.S.E. drew 32% of its volume from New York State as against 29% for the N.Y.S.E. The No. 2 source of business, California, accounted for 9.5% at the A.S.E., 9.4% on the Big Board.

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