DAX Stock Index: Definition and Member Companies

In total, the companies listed in the DAX represent around 79 per cent of the German stock exchange value. For this reason, the DAX and its performance are also regarded as an indicator for the German share market as a whole. The DAX 40, or DAX Index, is a German stock market index comprising the 40 biggest https://www.forex-world.net/stocks/starbucks/ companies – by market capitalization and liquidity – trading on the Frankfurt Stock Exchange (FSE). The DAX 40 is considered a strong measure of German and European economic health. View the chart for real-time information on the DAX price, and follow the latest DAX news, analysis and forecasts.

1. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume.
2. For example, shares must be listed in the Prime Standard of the Deutsche Börse.
3. The success of these companies has greatly contributed to what is known as the «German economic miracle» or Wirtschaftswunder, a term that describes Germany’s rebirth after World War II.
4. For this reason, the DAX and its performance are also regarded as an indicator for the German share market as a whole.

Key pivot points and support and resistance provide further insights to help you trade DAX. In a different twist from most indices, the DAX is updated with futures prices for the next day, even after the main stock exchange has closed. Changes are made on regular review dates, but index members can be removed if they no longer rank in the top 45 largest companies, or added if they break the top 25. https://www.topforexnews.org/software-development/software-engineering-salaries-in-europe-vs-the/ The DAX—also known as the Deutscher Aktien Index or the GER40—is a stock index that represents 40 of the largest and most liquid German companies that trade on the Frankfurt Exchange. The prices used to calculate the DAX Index come through Xetra, an electronic trading system. A free-float methodology is used to calculate the index weightings along with a measure of the average trading volume.

Real Time News

For example, the companies must present regular quarterly reports and annual financial statements as well as hold an annual analyst conference. The DAX index, which tracks 40 large and actively traded German companies, is considered by many analysts to be a gauge for Germany’s economic health. The companies listed in the DAX are multinational concerns that influence the domestic German economy and the global economy as well. The success of these companies has greatly contributed to what is known as the «German economic miracle» or Wirtschaftswunder, a term that describes Germany’s rebirth after World War II. DAX member companies represent roughly 80% of the aggregate market capitalization that trades on the Frankfurt Exchange.

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Quotes and Performance

In order to be included in the DAX, a company must fulfill certain criteria. For example, shares must be listed in the Prime Standard of the Deutsche Börse. In this exchange segment, companies must meet specific international transparency requirements.

Price information DAX

As a blue-chip stock market index, the DAX is very similar to the Dow Jones Industrial Average (DJIA), which also tracks large, publicly owned companies. Softer guidance from mega-cap tech stocks could send stock markets back to square one, one analyst said. The vast majority of shares on the Frankfurt Exchange now trade on the all-electronic Xetra system, with a near-95% adoption rate for the stocks of the 40 DAX members. The composition of the DAX is reviewed once annually and adjusted where necessary.

News in other languages on DAX

The index was historically comprised of 30 companies but was expanded to 40 as of Sept. 3, 2021. For example, Bayer AG is a pharmaceutical and consumer health company founded in 1863 and is well-known for its pain and allergy-relief products. where to invest when interest rates are low Allianz SE is 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.