Amex Lists Roster of Nasdaq Defectors for the Launch of Market for Start-Ups
NEW YORK -- The American Stock Exchange named the first 21 companies that plan to abandon the over-the-counter stock market and join the Amex's new market for tiny start-up companies.</br></br>The list, disclosed yesterday, represents the biggest one-time defection of companies from the Nasdaq over-the-counter market. But there's nary a household name, and not a lot of earnings either, among the companies planning to switch to the Amex's Emerging Company Marketplace starting Wednesday.</br></br>The defectors include such little-known names as Top Source Inc., Three Five Systems Inc., Printron Inc. and American Pacific Mint Inc. Many of the companies, including Printron, are currently among the smallest and most fitfully traded stocks; some are listed on Nasdaq's electronic "OTC bulletin board." None is going public for the first time, though the Amex says it's talking with three such currently private companies.</br></br>The Amex promised the new arrivals what amounts to a free trial offer. The Amex waived the $5,000-a-company fee to list on the emerging marketplace for companies that are part of next week's launch. Companies were also reminded that they can keep a relationship with their Nasdaq dealers, so they can theoretically return to Nasdaq later if they want.</br></br>None of Nasdaq's most prized OTC companies are on the new Amex roster. Indeed, Nasdaq officials asserted that their marketplace is unfazed by the defections. "This emerging market appears to be a wheel that does not need to be reinvented," said a Nasdaq spokesman.