What Is DAX?
DAX is a stock index that represents 30 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 average trading volume.
The DAX was created in 1988 with a base index value of 1,000. DAX member companies represent roughly 75% of the aggregate market cap that trades on the Frankfurt Exchange.
In a different twist from most indexes, 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.
The vast 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.
DAX Member Companies
As of April 6, 2018, the DAX companies included (in alphabetical order):
- 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)
- 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)
Other major trading exchanges worldwide include:
- The New York Stock Exchange (NYSE)
- The Nasdaq
- The London Stock Exchange (LSE)
- The Tokyo Stock Exchange (TSE)
As with the DAX, all exchanges have specific listing requirements for those who wish to offer their securities for trading. In general, these include regular financial reports, audited earning reports, and minimum capital requirements. For example, the NYSE has a key listing requirement that stipulates a company must have a minimum of $4 million in shareholder’s equity and pre-tax income in the last fiscal year or two of three most recent fiscal years of 750,000 in its first of four categories.