Dax Definition

What Is the DAX Stock Index?

The DAX—otherwise referred to as the Deutscher Aktien Index—is a stock index covering 30 of the biggest and most liquid German organizations that trade on the Frankfurt Exchange. The costs used to measure the DAX Index come through Xetra, an electronic trading system. A free-float philosophy is used to measure the index weightings alongside a calculation of the mean trading volume.

The DAX was established in the late 1980s with a base index estimation of 1,000. DAX member organizations make up approximately 75 percent of the total market capitalization that exchanges on the Frankfurt Exchange.

Main summary

The DAX is a German blue-chip financial stock market index that monitors the performance of the 30 biggest organizations that actively trade on the Frankfurt Stock Exchange.

Xetra is an electronic trading system that gives the costs used to measure the DAX index.

The DAX is a key benchmark for German and European stocks, listing significant organizations by liquidity and market capitalization.

A couple of the internationally recognized and renowned organizations on the DAX include BMW, Adidas, Volkswagen, Bayer.

Getting to grips with the DAX Stock Index

The DAX index, which monitors 30 major and actively traded German organizations, is considered by numerous economists and analysts to measure the general health and performance of the German economy. The organizations listed in the DAX are worldwide organizations that impact the local German economy and the worldwide economy. The success and performance of these organizations have incredibly added to what in particular is known as the “German economic miracle” or Wirtschaftswunder, a term that portrays Germany’s resurrection after the devastation from World War II.

The organizations in the DAX index cover a wide scope of businesses, sectors, and industries. For instance, Bayer AG is a pharmaceutical and consumer health organization established in the early 1860s and is notable for its agony and hypersensitivity help items. Allianz SE is a worldwide money-related administration organization that centers around giving clients protection and resource to the executives’ items. Adidas AG creates, produces, and markets mainstream athletic footwear, clothing, and hardware.

Other Considerations to bear in mind

In an alternate turn from most indices, the DAX is regularly updated with futures costs for the following day, even after the fundamental stock trade has shut. Changes are made on standard review dates. However, index members can be rejected in the event that they do not rank in the 45 biggest organizations or included on the off chance that they break the top 25.

By far, most of all shares on the Frankfurt Exchange presently exchange on the all-electronic Xetra system, with a close 95% selection rate for the 30 DAX members’ stocks.

As a blue-chip stock index, the DAX is fundamentally the same as the Dow Jones Industrial Average (DJIA), which likewise tracks major organizations owned by the public.

Here is a complete list of the DAX businesses:

• Covestro AG (1COV:GR)
• adidas AG (ADS:GR)
• Allianz SE (ALV:GR)
• BASF SE (BAS:GR)
• Bayer AG (BAYN:GR)
• Beiersdorf AG (BEI:GR)
• Bayerische Motoren Werke AG (BMW:GR)
• Continental AG (CON:GR)
• Daimler AG (DAI:GR)
• Deutsche Boerse AG (DB1:GR)
• Deutsche Bank AG (DBK:GR)
• Deutsche Post AG (DPW:GR)
• Deutsche Telekom AG (DTE:GR)
• E.ON SE (EOAN:GR)
• Fresenius Medical Care AG & CO KGaA (FME.GR)
• Fresenius SE &Co KGaA (FRE:GR)
• HeidelbergCement AG (HEI:GR)
• Henkel AG & Co KGaA (HEN3:GR)
• Infineon Technologies AG (IFX:GR)
• Deutsche Lufthansa AG (LHA:GR)
• Linde PLC (LIN:GR)
• Merck KGaA (MRK:GR)
• MTU Aero Engines AG (MTX:GR)
• Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (MUV2:GR)
• RWE AG (RWE:GR)
• SAP SE (SAP:GR)
• Siemens AG (SIE:GR)
• Vonovia SE (VNA:GR)
• Volkswagen AG (VOW3:GR)
• Wirecard AG (WDI:GR)

Prerequisites for the DAX

Likewise, with the DAX, all trades have particular listing necessities for the individuals who wish to offer their securities up for trading. As a rule, these incorporate normal money related reports, inspected earnings reports, and capital requirements.

For instance, the NYSE has a key listing prerequisite that specifies an organization must be profitable, have in any event 400 investors who own in excess of 100 shares of stock at the very least price of four dollars per share, and at least 1.1 million publicly traded shares. For global market trading, the prerequisites that organizations must meet are stricter.

To be listed on the DAX, an organization must pass stringent selection criteria and keep on meeting those prerequisites every quarter when the index is reassessed. A section of the requirements includes that shares must have a free float of ten percent. The listing organization must have its headquarters in Germany. The organization must be listed in the Prime Standard segment, which is saved for just those organizations that meet the stringent regulations.