DAX Stock Index - AstroDunia
What Is the DAX Stock Index?
The DAX—also referred to as the Deutscher Aktien Index—is a stock market index that represents 30 of the most important and most liquid German companies that trade on the Frankfurt Exchange. the costs want to calculate the DAX Index come through Xetra, an electronic trading system. A free-float methodology is employed to calculate the index weightings alongside a measure of the typical trading volume.
The DAX was created in 1988 with a base index value of 1,000. DAX
member companies represent roughly 75% of the mixture market capitalization
that trades on the Frankfurt Exchange.
KEY TAKEAWAYS
- The DAX may be a German blue-chip stock exchange index that tracks
the performance of the 30 largest companies trading on the Frankfurt stock
market.
- Xetra is an electronic trading system that gives the costs want to
calculate the DAX index.
- The DAX may be a prominent benchmark for German and European
stocks, listing major companies by liquidity and market capitalization.
- A few of the globally recognized companies on the DAX include
Volkswagen, Bayer, BMW, and Adidas.
Understanding the DAX stock market index
The DAX index, which tracks 30 large and actively traded German
companies, is taken into account by many analysts to be a gauge for the health
of the German economy. the businesses listed within the DAX are multinational
companies that influence the domestic German economy and therefore the global
economy also. The success of those companies has greatly contributed to what's
referred to as the "German economic miracle" or Wirtschaftswunder, a
term that describes Germany's rebirth after war II.
The companies within the DAX index span a good range of
industries. for instance, Bayer AG may be a pharmaceutical and consumer health
company founded in 1863 and is well-known for its pain and allergy-relief
products. Allianz SE may be a global financial services company that focuses on
providing customers with insurance and asset management products. Adidas AG
develops, manufactures, and markets popular athletic footwear, apparel, and
equipment.
Special Considerations
In a different twist from most indices, the DAX is updated with futures prices for the subsequent day, even after the most stock market has closed. Changes are made on regular review dates, but index members are often removed if they do not rank within the top 45 largest companies, or added if they break the highest 25.
The overwhelming majority of all shares on the Frankfurt Exchange
now trade on the all-electronic Xetra system, with a near-95% adoption rate for
the stocks of the 30 DAX members.
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