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National Association of Securities Dealers, Inc. 1998 1999, National Association of Securities Dealers, Inc. All rights reserved. NASD is a registered service mark of the National Association of SecuritiesDealers, Inc. Market of Markets is a service mark of the National Association of Securities Dealers, Inc. American Stock Exchange and Amex are registeredservice marks of the American Stock Exchange, LLC. Nasdaq, Nasdaq-100 Index, Nasdaq Composite, and The Nasdaq Stock Market are registered servicemarks of The Nasdaq Stock Market, Inc. MarketSite, Research And Data Analysis Repository (RADAR), SelectNet, StockWatch Automated Tracking (SWAT),The Nasdaq-Amex Market Group, and Nasdaq-Amex are service marks of The Nasdaq Stock Market, Inc. NASD Regulation is a registered service mark ofNASD Regulation, Inc. NASDR and Order Audit Trail System (OATS) are service marks of NASD Regulation, Inc. Central Registration Depository (CRD) is aservice mark of the NASD and the North American Securities Administrators Association, Inc. (NASAA).1 9 9 8DN A SA LN UNAPR EORTTHE MARKETOFMARKETSSM
ORIGINPROFILEThe National Association of Securities Dealers, Inc.(NASD ) was organized under the 1938 Maloney Act amendments to the Securities Exchange Act of 1934 to address theU.S. securities industry’s need for self-regulation.The Maloney Act authorized the U.S. Securities andExchange Commission (SEC) to register voluntary nationalassociations of broker/dealers for the purpose of regulating themselves under SEC oversight. Every U.S. securities firm transacting business with the public is currently required by law to bean NASD member.NASD’s founding mandate was to standardize the securitiesindustry’s principles and practices, to promote high standards ofcommercial honor, to advance just and equitable principles of tradefor investor protection, to adopt and enforce fair practice, and tofoster member observance of federal and state securities laws.The NASD, taking direction from the SEC in 1963, adoptedas another tenet of its self-regulatory mandate, the promotion ofcapital formation by developing, operating, and regulating fairand efficient securities markets. The Nasdaq Stock Market wasfounded in 1971 to fulfill this mandate.The NASD is the largest securities-industry self-regulatoryorganization in the world. It is the parent organization of TheNasdaq-Amex Market Group, Inc., which operates Nasdaq and the American Stock Exchange (Amex ) together underone corporate umbrella. The NASD oversees the activities ofthe U.S. broker/dealer profession and regulates Nasdaq, Amex,and the over-the-counter securities markets.The NASD sets the organization’s strategic direction andpolicy agendas with a view toward the fulfillment of statutoryand self-regulatory obligations. The Nasdaq-Amex MarketGroupSM develops and operates marketplace systems and servicesand formulates market policies and listing criteria. Nasdaq andAmex operate separately under a dual market structure that setsthe stage for the future, providing technological innovation,resources, and increased operating efficiency to provide benefitsto investors, companies, and member firms of all sizes. NASDRegulation, Inc. (NASD RegulationSM) carries out NASD’sregulatory functions, including on-site member firm examinations, automated market surveillance, and disciplinary actionsagainst broker/dealers and their professionals.
OUR MISSIONis to facilitate capital formation byCcreating the markets of choice —operated and regulated to achievethe most liquid, cost-efficient,technologically advanced, and fairsecurities markets in the world —for the benefit and protectionof investors.1ONTENTS1998 Highlights2Letter from the Chairman4The Market of Markets6Global Reach8Premier Companies10Innovative Products16Unparalleled Technology18Investor Protection22Board of Governors241998 Statistical Highlights261998 Financial Information271999 Boards and Committees49Corporate Officers52Office Locations55On the Internet57
1998 HIGHLIGHTSNASDAQ-AMEX:LEADERSHIP INCAPITALFORMATIONIn a historic combination, NASD united with the American Stock Exchangeon October 30, 1998. The Nasdaq-Amex Market Group is the first step inthe Market of Markets vision to create the world’s most technologicallyadvanced trading network, delivering better products at lower cost.2
Nasdaq-Amex Volume Growth(in 50001504000300010020001000019941995 Dollar Volume19961997199850 Share VolumeNasdaq-Amex: Leadership in Capital Formation#1#1#1#1#1#1#1#1#2#1Based on Nasdaq and NYSE statistics,Nasdaq surpassed the NYSE in dollarvolume for the first time on a monthlybasis in January 1999, and continued todo so in February and March.IN DAILYSHARES TRADEDBased on Nasdaq and NYSE statistics,Nasdaq began to surpass the NYSE indaily share volume in early 1994 andcurrently trades more shares on a dailybasis on an average 9 out of 10 days.IN DAILYDOLLAR VOLUMEIN NUMBEROF COMPANIESLISTEDBased on published exchange records foryear-end 1998, total companies listedwere as follows: Nasdaq-5,068;Deutsche Börse-3,525; NYSE-2,669;London Stock Exchange-2,520.IN INITIALPUBLIC OFFERINGSBased on published exchange records,1998 total IPOs were as follows:Nasdaq-273; NYSE-68; Amex-21.IN NUMBER OFNON-U.S. LISTINGSBased on published exchange recordsfor year-end 1998, the total number ofnon-U.S. listings were as follows:Nasdaq-484; NYSE-461; Amex-67.IN GROWTHCOMPANIESOf the Business Week 100 HotGrowth Companies (June 1, 1998),95 were listed on Nasdaq-Amex.Of the FORTUNE 100 FastestGrowing Companies in America(September 28, 1998), 60 were listedon Nasdaq-Amex.IN PRICEPERFORMANCEBased on published records, the NasdaqComposite Index has risen 475% overthe past 10 years, compared with a343% gain for the Standard & Poor’s500 Index and a 323% gain for theDow Jones Industrial Average. TheNasdaq-100 Index has risen by 935%.IN OPTIONSTRADINGBased on published exchange records,the Amex accounted for 24.03% oftotal U.S. options trading in 1998,compared with 50.89% for the ChicagoBoard Options Exchange, and 14.1%for the Pacific Stock Exchange, thenumber 1 and number 3 optionstraders, respectively.IN INDEXSHARESThe American Stock Exchange, thepioneer in index share products, traded2.237 billion index shares in 1998.SELF-REGULATORYORGANIZATIONIN THE WORLDThe NASD is the largest self-regulatoryorganization in the world, having 5,592member firms with 70,752 domesticbranch offices and 589,120 registeredrepresentatives at year-end 1998.
LETTER FROM THE CHAIRMANHere is what we have done recently and what we plan to do:Frank G. ZarbNASD Chairman andChief Executive OfficerNasdaq-Amex Combination. The NASD acquired theAmerican Stock Exchange last autumn as the first steptoward our vision to create a worldwide high-tech tradingnetwork delivering more and better products at lowercost. This combination creates the world’s first majorfinancial market that brings together a central auctionSpecialist system (Amex) and a multiple Market Makersystem (Nasdaq) — in short, a “Market of Markets.”By integrating such strengths as Nasdaq’s technologyexpertise and premier issuer base with Amex’s historicleadership in options and exchange-traded fundproducts, The Nasdaq-Amex Market Group increaseschoices and opportunities for market participants likenever before. Offering two distinct market structures,Nasdaq-Amex can now provide the system that is bestfor any given company, and can deliver objective adviceand consultation to companies in determining whichsystem will benefit them most.Sweeping changes are happening inthe world of investing. The NASD is,and will continue to be, an instrumentof those changes.The changes are being spurred by several factors.An explosion of Internet and computer-based trading isrevolutionizing investing and shattering geographicboundaries. Contemporary investors, from the smallestindividual shareholder to the largest institutions, aredemanding, and increasingly getting, instant access toinformation and immediate execution of trades. Theeconomy now is truly global and interconnected, and themarkets are evolving to meet capital formation needsworldwide. Changing demographics — from peopleliving longer and investing more for retirement to thegrowth of new investors in Europe and Asia — willcontinue to shape the market.A significant investment in technology, includingautomating Amex trading, will lead to more efficientpricing, faster trade execution, and reduced transactioncosts. Cost efficiencies for members will be realized asa result of the increased economies of scale andreduced order-handling charges.Globally Linked Markets. We are continuing to exploreacquisitions and alliances with other stock markets, bothdomestically and internationally. Internationally, we arecollaborating, or holding discussions, with various stockexchanges and others to develop alliances that willexpose investors outside the United States to our listedcompanies, and expose U.S. investors to listed companies from abroad.The stock markets have to change to respond to theseneeds. Listed companies and investors are demandingimprovements in the process of exchanging stock. Anext generation of stock markets is needed, not only tofulfill the capital formation function, but to provide worldwide, instant price discovery and trade execution in afair, orderly, low-cost, and well-regulated environment,without time zone limitations.Our plan is to create Nasdaq-type markets, using theInternet, to connect pools of liquidity and to provide realtime trading information and execution internationally.Over time, this will lead to dual listings of companies onNasdaq-Amex and overseas markets, and eventually toa transparent, seamless, electronic, well-regulated,global marketplace in which investors can buy and sellglobal securities anytime, anywhere in the world.We at the NASD plan to lead this effort.As the premier electronic stock market in the world, weare poised for the challenge. We have already startedon several fronts. With international alliances, domesticmergers, and the continued advancement of our highspeed communications and trading and regulatorynetworks, we are on the way to becoming a globalnetwork connecting with investors worldwide.Last year we embarked on a venture with the StockExchange of Hong Kong (SEHK) to create a crosslisting program and joint Web site that enables U.S.4
and better serve investors. This type of restructuringalready has been done by some overseas markets.investors to trade in non-U.S. securities, and viceversa. In a pilot project, Nasdaq companies will tradeon SEHK and Hong Kong companies will trade onNasdaq. The new joint Web service allows investors toreview financial data and maintain their portfolios forstocks on both SEHK and Nasdaq-Amex in the currencyof their choice.As you can see, we at the NASD don’t intend to standby as the world changes.We see major potential in Asia. We are exploring similarcross-border opportunities with the Shanghai StockExchange and other Asian markets as well. China hastremendous potential as a securities market. During1999, we will open an office in Shanghai. We also seemajor potential in Europe, where we are exploring jointprograms with several markets.Record Nasdaq Growth. We experienced record growthin 1998 in trading volume and market value. Significantlyoutperforming virtually every other market index, theNasdaq-100 Index emerged as a new “blue chip” indicator,demonstrating the importance of these and otherNasdaq-Amex companies to both the nation’s and theworld’s economic vitality. Nasdaq has become the fastestgrowing equities market in the U.S., in addition to beinghome to America’s fastest growing companies.We are launching a Web-based stock screening investmentservice in the United Kingdom to help empower individualinvestors by giving them the same type of sophisticatedresearch tools used by institutions. Nasdaq-Amex alreadyhas a U.K. Web site. We are exploring other ventures inthe U.K. where sophisticated investors are increasinglyinterested in our growth companies.The NASD itself produced solid financial results in 1998,with consolidated revenues reaching an all-time highand net income increasing by 30 percent over theprevious year. Our financial strength, in turn, enabled usto reduce trading costs to our members by 130 million,and gave us additional resources to invest in people andtechnology for the future.Regulation Keeping Pace with Changing Markets.NASD Regulation will keep pace with these dramaticmarket changes, the extraordinary growth in retailinvestor participation, advances in technology, andglobalization. Regulation of trading in the new globalmarket will be enhanced by new Internet technology,including advanced electronic surveillance systems, toensure continued investor confidence, which is thecornerstone of a successful market.Individual investor participation is mushrooming, especially on the Internet, which now accounts for a third ofall trading by individual investors. Nasdaq-amex.com,our investor Web site, now averages more than24 million hits per day. This year, we will open our new 37 million MarketSite, including a public interactiveexhibit and a Nasdaq-Amex broadcast facility. It will bein Manhattan’s busy and revitalized “new” Times Squareand will give our listed companies increased visibility.More Trading Hours and NASD Restructuring. As partof such dramatic changes to the existing market system,we are studying extending trading hours into the evening,earlier in the morning, or both. This change would benefitinvestors who want to be able to trade stocks when theyget home after work, and could deepen liquidity, benefiting investors, issuers, and our members.Rapid changes and improvements will continue in 1999and beyond, leading toward our vision of being a primecreator of the next-generation stock market that willrevolutionize trading. We will lead, not follow.Another change to the market being considered isrestructuring The Nasdaq-Amex Market Group, making ita for-profit company. The equity could be owned by theMarket Makers and corporate issuers, or even some of it,eventually, by the public through a stock offering. Doneproperly, a change in status could provide needed capitalto build our marketplace, lower costs to our members,Frank G. ZarbNASD Chairman and Chief Executive OfficerMay 17, 19995
THE MARKET OF MARKETSTHE MARKET OFMARKETSThe VisionGlobalReachPremierCompaniesTHE nUnparalleledTechnology6
The Market of Markets is NASD’s vision for the changing face of globalfinancial markets. With neither borders nor boundaries, it is poised todeliver value and opportunity in the fastest, most efficient manner tothe ever-expanding universe of investors.The Market of Markets transcends national and technological boundaries to connect investors and issuersworldwide. Free of limitations, it provides fair and inclusive access, bringing the world’s financial markets to thescreen of each and every investor. It provides a clearavenue to the world’s top growth companies and a hostof innovative investment products.Fulfillment of the Market of Markets vision will create a24-hour, seamless, transparent, and well-regulatedglobal market, providing high-quality investment productsat lower cost to Wall Streets, Main Streets, and HighStreets worldwide.The Market of Markets builds the foundation for connecting market participants in the new millennium of investing.Through the most technologically advanced tradingnetworks and comprehensive financial Web sites, itoffers superior efficiency and visibility, and provides thehighest quality market information to both companiesand their shareholders.7
GLOBAL REACHLinking global marketsfor worldwide tradingGlobalReachPremierCompaniesTHE nUnparalleledTechnology8
Total Non-U.S. Nasdaq-Amex Companies: 507(as of year-end 1998)Canada189Belgium3Israel77Switzerland3United taly2Australia17New Zealand2Japan16Singapore2Hong Kong15Taiwan2Sweden13Virgin Islands2South an ece4New Guinea1Liberia4Norway1Luxembourg4NASD is also exploring similar cross-border opportunities with many of the world’s exchanges, includingDeutsche Börse, the Shanghai Stock Exchange, andthe Singapore Stock Exchange.NASD’s strategic plan for a globally linked market isstraightforward: Connect pools of liquidity and providereal-time information through international marketpartnerships to assemble a transparent and wellregulated 24-hour global market.In all these initiatives, investor protection remainsNASD’s and NASD Regulation’s (NASDRSM) highest priority. We are committed to fair and balanced regulationamong the world’s capital markets, while respectingregional culture and practices. NASDR puts the investorfirst through a regulatory agenda dedicated to investorprotection and complete market integrity.Our alliance with the Stock Exchange of Hong Kong(SEHK), initiated in 1998, demonstrates a cross-listingand information-sharing model of full market globalization with unlimited access. This will enable U.S. investorsto trade in non-U.S. securities, and vice versa, with lowercost, fewer restrictions, and timely information.In an innovative pilot program, 10 Nasdaq companies willtrade as ordinary shares in Hong Kong and 10 HongKong companies will trade as ordinary shares on Nasdaq.A new joint Web service — porttracker.nasdaq-sehk.com— is already in service. Investors can review financialdata for stocks listed on SEHK and Nasdaq-Amex ineither U.S. or Hong Kong dollars.9
Where do you find theworld’s most excitingcompanies?GlobalReachPremierCompaniesTHE nUnparalleledTechnology10
Nasdaq-Amex is home to a diverse array of the world’smost dynamic companies. They represent leaders intechnology, manufacturing, biotechnology, transportation,communications, and finance. Why do high-performingcompanies choose Nasdaq-Amex?Business Week’s100 Hot Growth CompaniesBy electing to list on a Nasdaq-Amex market, companieshave access to: unmatched market quality and a growing globalnetwork international visibility and an expanded pool ofinvestors innovative investment products, such as theNasdaq-100 Index Tracking StockSM, designed tocreate wider demand for a company’s equities the world’s most advanced and comprehensivemarket technology and information services vigorous regulatory oversight and protection fortheir shareholders6/1/98Nasdaq-Amexhas95
Outperforming othermajor market indexesGlobalReachPremierCompaniesTHE nUnparalleledTechnology12
The Nasdaq-100 Index — the best performing majorindex in the world — includes Nasdaq’s top 100 U.S.and international non-financial listed stocks. They arehousehold names, some of the world’s most excitingcompanies that have achieved success — and continueto surpass expectations — in their existing and newlycreated industries.These companies are part of what makes The NasdaqAmex Market Group the most dynamic market. They arethe new blue chips in today’s competitive global economy.The Index reflects Nasdaq’s largest growth companiesacross major industry groups, including computerhardware and software, telecommunications, airlines,department stores, retail/wholesale, and biotechnology.All index components currently have a marketcapitalization of at least 500 million, and a minimumaverage daily trading volume of 100,000 shares.1998 Industry Growth Comparison100Nasdaq-100 Index1998 close: 1,836.01806040200Dow JonesIndustrialAverageS&P 500NasdaqCompositeNasdaq-100Nasdaq-100 Index Value200058 percentage pointsbetter than the S&P 500150068 percentage points1000better than the DJIA500085%growth1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
1998 IPOsAmex21NYSE68Nasdaq273Participating Market Makers and Specialists helpedNasdaq-Amex offerings raise more than 35 billionin 1998More companies gopublic on Nasdaq-AmexWith more than 80 percent of U.S. initial public offerings,Nasdaq-Amex creates opportunities for new companiesby providing them access to the capital markets. Newlylisted companies invest this capital to grow their companies, and to deliver value to consumers and shareholders.GlobalReachPremierCompaniesTHE nNasdaq-Amex provides investors with opportunities toinvest in emerging industry leaders. By bringing issuersand investors together efficiently, The Nasdaq-AmexMarket Group creates exciting opportunities to participatein leading-edge developments in business, science, andtechnology — developments that fuel economic growthworldwide.UnparalleledTechnology14
1998 NASDAQ IPOs1-800 Contacts21st Century Holding Company24/7 Media800 Travel Systems Inc.A.C.L.N. LimitedAbgenixAbovenet CommunicationsAcsys Inc.Actuate Software Corp.Adams GolfAdmiralty Bancorp Inc.American Aircarriers SupportAmerican Dental PartnersAmerican Safety Insurance Group LTDAmerican Xtal TechnologyAmresco Capital TrustAnnuity & Life Re Holdings Ltd.Answer Think Consulting GroupARM Holdings PLCArtificial LifeArtisan ComponentsAspec TechnologyAssociated Materials IncorporatedAstropowerAsymetrix Learning SystemsATGAtlantic Data ServicesAudiohighway.comBalance Bar CompanyBanc CorporationBank Rhode IslandBankfirst Corp.BCSB Bankcorpbebe stores, inc.Bindview Development Corp.Bioshield Technologies Inc.Birner Dental Management ServicesBlue Rhino CorporationBlue River BancsharesCost U Less IncCowlitz BancorporationCreative Master InternationalCreditrust Corp.Crown Castle International CorpCrusader Holding Corp.Cuidao Holding CorporationCultural Access WorldwideCumetrixCumulus MediaCunningham Graphics InternationalCuragen Corp.Curtis InternationalCyberian OutpostCybershop InternationalDA Consulting GroupDearborn BancorpDecoma InternationalDectron Internationale Inc.Delicious BrandsDigital River Inc.Dispatch Management Services Corp.Diversified Senior ServicesDorel IndustriesDoubleclickDSET CorporationE Tek Dynamics Inc.EarthShell CorporationEarthweb Inc.eBay Inc.EchelonEclipsys Corp.Electronics Boutique Holdings Corp.Entrust TechnologiesEufaula BancorpEuropean Micro HoldingsEvolving SystemsExchange Applications IncExodus CommunicationExtended SystemsIBS InteractiveICO Global Communications Ltd.Icon CMT CorporationICON PLCIDG Books WorldwideIndependent Energy HoldingsIndigo Aviation ABIndustrial Rubber ProductsInfospace.ComInktomi Corp.Innotrac CorporationIntegrated Sensor SolutionsInteractive Magic Inc.International IntegrationInternet America Inc.Interplay Entertainment CorporationISS GroupIxos Software AGJenkon International Inc.King PharmaceuticalsKnight/Trimark GroupLadish CompanyLamar Capital CorporationLJ InternationalLJL BiosystemsLMI AerospaceManhattan Associates Inc.Master Graphics Inc.Maxtor Corp.MED-EMERG INTERNATIONAL INC.MegaBank Financial CorporationMercury Computer SystemsMerge TechnologiesMerkert American CorpMerrill Merchants BancsharesMetroCorp Bancshares IncMGC CommunicationsMicromuseMicrostrategyMidwest Banc HoldingsRosedale Decorative ProductsRoyal Olympic Cruise LinesRushmore Financial GroupSCC Communications Corp.School SpecialtyScottish Annuity & Life Holdings LTDSelect Comfort CorporationShire Pharmaceuticals GroupShoe PavilionSkyePharma plcSM&A CORPSoftware Net Corp.SOFTWORKSSQL Financials InternationalSTET Hellas Telecommunications S.A.SurModicsSymphonix DevicesTAM RestaurantsTeam Communications GroupTechnisourceTeleBanc Financial Corp.Telesystem International Wireless Inc.Terayon Communications SystemsTheglobe.comTicketmaster Online-CitySearch, Inc.Towne ServicesTransgene SATweeter Home Entertainment GroupUBID Inc.Ultimate Software GroupUniservice Corp.United Investors Realty TrustUnited PanAm Financial CorpUrsus Telecom CorporationUS LEC CorporationUSN CommunicationsVail Banks Inc.Verio Inc.VerisignVI TechnologiesBMJ Medical ManagementBNC MortgageBrightstar Information Technology Groupbroadcast.com Inc.Broadcom CorporationC2i SolutionsCaliber Learning Network Inc.Capital Automotive REITCardinal Financial Corp.Career Education Corp.Carreker AntinoriCarrier Access Corp.Cash TechnologiesCDNowCentral European Distribution Corp.Chapman Capital Holdings Inc.Chapman HoldingsCharles River AssociatesChastain Capital CorporationClaimsnet.ComClark Bardes HoldingsCleveland Indians Baseball CompanyCNB HoldingsCognizant Technology SolutionsCorp.Collateral TherapeuticsColorado Business BancsharesColumbia Sportswear CompanyCom21CombiChemCommand SystemsCompass International Services Corp.Computer Literacy Inc.Concur Technologies IncCondor Technology SolutionConrad IndustriesFactual Data CorporationFirst Consulting GroupFirst Virtual Corp.FirstLink CommunicationsFlorida BanksFlour City InternationalFrontline Communications CorporationFundtechGalacticomm TechnologiesGalvestons Steakhouse Corp.Gay Entertainment TelevisionGenesis DirectGenesis Microchip Inc.GeoCitiesGiga Information GroupGLB BancorpGlobal Crossing Ltd.Global Imaging SystemsGlobal Telesystems GroupGolden State VintnersGrand Court LifestylesGuaranty BancsharesHappy KidsHastings EntertainmentHavana GroupHawker Pacific AerospaceHeadlands Mortgage CompanyHines HorticultureHLM DesignHometown Auto RetailersHorizon Medical ProductsHorizon OffshoreHorizon Organic Holding Corp.Host America Corp.Hyperion TelecommunicationsHypertension Diagnostics Inc.Miller Exploration CompanyMIPS TechnologiesMobius Management Systems Inc.Muse TechnologiesNanogenNatrolNavigant InternationalNetGravityNetwork 1 Security SolutionsNew Frontier MediaNewmark Homes Corp.Noga ElectronicsNortheast Optic NetworkNutraceutical International Corp.Optomedic Medical Technologies Ltd.Paradigm Geophysical Ltd.PawnmartPBOC HoldingsPC ConnectionPF Chang’s China BistroPilot Network ServicesPoint of Sale LTDPointe Financial Corp.Professional DetailingProsperity BancsharesProtosource Corp.Provant Inc.Province Healthcare CompanyRailworks Corp.Rainbow RentalsRealax Software AGRegistry MagicRepublic Bancorp Inc. (KY)Republic Banking Corp. of FloridaRestoration Hardware, Inc.Rockwell Medical TechnologiesViagrafix CorporationVisual NetworksVysisWashington Banking CompanyWaste ConnectionsWilshire State BankXoom.com, Inc.bebe stores, inc.broadcast.com Inc.eBay Inc.GeoCitiesTicketmasterOnline-CitySearch, Inc.RestorationHardware, Inc.Xoom.com, Inc.1998 AMEX IPOsAeroCentury Corp.Anworth Mortgage Asset CorporationBalanced Care CorporationBay State Bancorp, Inc.Capital Alliance Income Trust Ltd.CPS Systems, Inc.EFC Bancorp, Inc.Emultek Ltd.Gildan Activewear Inc.IOMED, Inc.Jinpan International LimitedNortheast Pennsylvania Financial Corp.ONIX Systems Inc.Pentegra Dental Group, Inc.PMCC Financial Corp.Resource Asset Investment TrustRiboGene, Inc.Security of Pennsylvania Financial Corp.Sherwood Brands, Inc.Showpower, Inc.Sonic Foundry, Inc.Standard Automotive CorporationStav Electrical Systems (1994) Ltd.Tag-It Pacific, Inc.The InterCept Group, Inc.Transnational Financial Corporation
Innovative investmentsat lower costThe Amex is a true pioneer in investment products.Its creation of Index Share products allows investors toinvest in diverse pools of equities — trading groups ofequity shares as if they were single stocks — at thelowest possible cost with the highest convenience.Index Share products currently include SPDRs andMidCap SPDRs , based on the S&P 500 and MidCap400 indexes, respectively; Select Sector SPDRs, basedon S&P 500 companies; DIAMONDSSM, based on theDow Jones Industrial Average; and WEBS , based on aselection of Morgan Stanley Capital International (MSCI)indexes.GlobalReachPremierCompaniesTHE nUnparalleledTechnology16
In a perfect example of the synergies in The NasdaqAmex Market Group, in early 1999 we launched theNasdaq-100 Index Tracking Stock, a new product basedon the Nasdaq-100 Index. A unit investment trust, it isdesigned to track closely the price and yield performanceof the Nasdaq-100 Index. This proved to be the mostsuccessful product launch in Amex history, trading2.6 million shares in its first day.Amex also introduced its long history of expertise inoptions trading to The Nasdaq-Amex Market Groupalliance. Amex trades options on 26 indexes thatrepresent entire groups of stocks embracing specifieddomestic or global industries or markets. In this way,index options provide diversity for investors becauseone option consists of many individual stocks.Amex Continues to Offer Investment ChoiceStarted InSPDRs1993MidCap SPDRs1995WEBS1996DIAMONDS1998Select Sector SPDRs1998Nasdaq-100 Index Tracking Stock1999Options Trading Volume10000080000Trading in options opens a wide range of investmentstrategies to investors, offering greater flexibility andcontrol of stock holdings as well as broader opportunitiesto enhance investment returns.600004000020000019941995199619971998As one of the premier exchanges in options trading, theAmex trades put and call options on more than 1,100common stocks and 26 broad-market, sector, and international indexes. Nasdaq-Amex now offers quotes onthe Internet for equity and index options (nasdaqamex.com).Total Index Shares Volume(in daq-100 Index Tracking Stock2.6 millionshares in its first day of tradingOur options market has advanced technology and lowered costs significantly. Recent changes applying toboth equity and index options represent a savings tomember firms of more than 50 percent on transactioncharges. Amex has also upgraded its technology toincrease trading efficiency.The Amex share of options trading volume rose from 18percent in 1994 to 24 percent in 1998, demonstratinggrowth tha
The National Association of Securities Dealers, Inc. (NASD ) was organized under the 1938 Maloney Act amend-ments to the Securities Exchange Act of 1934 to address the U.S. securities industry's need for self-regulation. The Maloney Act authorized the U.S. Securities and Exchange Commission (SEC) to register voluntary national
