What is DAX?

DAX is a stock market index representing 30 of the largest and most liquid German companies trading on the Frankfurt Stock Exchange. The prices used to calculate the DAX index come from Xetra, an electronic trading system. A floating methodology is used to calculate the index weights as well as a measure of the average volume of trade.

The DAX was created in 1988 with a base index value of 1,000. The member companies of DAX represent approximately 75% of the overall market capitalization traded on the Frankfurt Stock Exchange.

DAX explained

In a different variant from most indices, the DAX is updated with the futures prices for the next day, even after the main stock market closes. Changes are made to regular review dates, but members of the index can be removed if they no longer rank in the 45 largest companies, or added if they exceed the top 25.

The vast majority of all shares on the Frankfurt Stock Exchange are now traded on the fully electronic Xetra system, with an adoption rate of almost 95% for the shares of 30 DAX members.

DAX member companies

As of April 6, 2020, the DAX companies included (in alphabetical order):

  • Covestro AG (1COV: GR)
  • adidas AG (ADS: GR)
  • Allianz SE (ALV: GR)
  • Bayer AG (BAYN: GR)
  • Beiersdorf AG (EIB: GR)
  • Bayerische Motoren Werke AG (BMW: GR)
  • Commerzbank AG (CBK: GR)
  • Continental AG (CON: GR)
  • Daimier AG (DAI: GR)
  • Deutsche Bank AG (DBK: GR)
  • Deutsche Post AG (DPW: GR)
  • Deutsche Telekom AG (DTE: GR)
  • E.ON SE (EOAN: GR)
  • Frensenius 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 AG (LINU: GR)
  • Merck KGaA (MRK: GR)
  • Muenchener Rckvrrgs Gsllcht Mhn AG in mu (MUV2: GR)
  • RWE AG (RWE: GR)
  • SAP SE (SAP: GR)
  • Siemens AG (SIE: GR)
  • thyssenkrupp AG (TKA: GR)
  • Vonovia SE (VNA: GR)
  • Volkswagen AG (VOW3: GR)

The other main trade in the world include:

  • The New York Stock Exchange (NYSE)
  • Nasdaq
  • The London Stock Exchange (LSE)
  • The Tokyo Stock Exchange (TSE)

As with DAX, all exchanges have specific listing requirements for those wishing to offer their securities for trading. In general, these include regular financial reports, audited income reports and minimum capital requirements. For example, the NYSE has a key listing requirement which states that a business must have a minimum of $ 4 million in equity and pre-tax income in the last fiscal year or two of the last three fiscal years of $ 750,000 in its first of the four categories.

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