DAX Stock Index

What is DAX Stock Index?

DAX stands for the Deutscher Aktien Index. It is a type of stock index that is known to represent around 30 most liquid and the largest companies in Germany that are known to trade on the famous Frankfurt Exchange. The prices that are being utilized for calculating the DAX Stock Index meaning are known to come with the help of Xetra. It is a popular electronic trading system. For calculating the respective index weightings in addition to the given measure of the average trading volume, a method known as a free-Float mechanism is used.

The DAX Stock Index came into existence in 1988. Initially, it had a base index value of around 1000. DAX member companies are used to represent around 75 percent of the aggregate Market capitalization trading on the Frankfurt Exchange.

Getting an Insight into the DAX Stock Index

The DAX Stock Index is responsible for tracking around 30 or more large-sized and actively-traded companies in Germany. It is regarded by several analysts to serve as the gauge for the condition of the entire German Economy. The organizations that are listed in the DAX Index tend to be multinational companies that are known to impact the domestic economy in Germany along with its global economy at the same time.

The overall success of the companies in Germany has significantly contributed to something referred to as the “German Economic Miracle.” In German, it goes by the term as “Wirtschaftswunder” –implying the rebirth of Germany after the Second World War.

The companies that have been listed in the prestigious DAX Index cover various Industry verticals. For instance, Bayer AG serves to be a leading pharmaceutical and consumer health company in Germany that was introduced in 1863. The company is well-known for its wide Range of pharmaceutical products in the allergy-relief and pain-relief category. At the same time, Allianz SE serves to be a leading financial service company across the globe that aims at focusing on Offering its consumers with asset and insurance management products & services. Adidas AG is known for developing, Manufacturing, and marketing world-famous athletic footwear, equipment, and apparel.

Special Considerations

Appearing as quite different from the other indices across the world, the DAX Stock Index is known to be updated with future prices for the upcoming day. This remains true even when the main stock exchange might have been closed. The respective changes are executed on review dates on a regular Basis. However, index members could be removed as well when they no longer tend to rank in the top 45 list of the largest companies. Moreover, they could also be added to the list when they are capable of breaking the top 25.

A majority number of shares present on the Frankfurt Exchange are now trading on Xetra –an all-electronic trading system –delivering around 95 percent of adoption rate for the stocks belonging to the 30 members of the DAX Stock Index.