DEFINITION of '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.

BREAKING DOWN 'DAX'

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 stipulate 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.

RELATED TERMS
  1. AG (Aktiengesellschaft)

    AG is an abbreviation of Aktiengesellschaft, which is a German ...
  2. Xetra

    Xetra is an all-electronic trading system, based in Frankfurt, ...
  3. Deutscher Aktienindex 100 - DAX ...

    The Deutscher Arktienindex 100, or DAX 100, is a former price-weighted ...
  4. Exchange

    An exchange is a marketplace in which securities, commodities, ...
  5. Tokyo Stock Exchange (TSE)

    The Tokyo Stock Exchange (TSE) is the largest stock exchange ...
  6. Vienna Stock Exchange (WBAG) .VI

    The Vienna Stock Exchange, also known as the Wiener Borse AG, ...
Related Articles
  1. Investing

    The Top 3 ETFs to Track the DAX for 2016

    Learn about the top exchange-traded funds (ETFs) for investors who are seeking exposure to the DAX Index and the MSCI Germany Index.
  2. Investing

    Top 3 ETFS for Investing in Germany

    Discover why Germany is considered an economic powerhouse in the eurozone, and learn about the three ETFs that provide investors exposure to Germany’s economy.
  3. Financial Advisor

    5 Companies Benefiting From Germany's Record Surplus

    A weaker euro is boosting German exports, which have led to a record trade surplus. Here are five German companies reaping the benefits.
  4. Investing

    Jazz Pharma Settles 2010 Xyrem Patent Lawsuit

    Jazz Pharmaceuticals stock spiked more than 6% after it settled its long-pending patent litigation.
  5. Investing

    How Deutsche Bank Market Manipulation Impacts Investors (DB)

    Explore the ramifications of Deutsche Bank's admission that it manipulated gold and silver from 2007 to 2014, including its similarities to other schemes.
  6. Insights

    The World's Top Financial Cities

    These cities are the heart of the world's financial activity.
  7. Insights

    The EU Banking Crisis Is Here (CS, DB)

    A banking crisis is beginning in Europe and is well underway in Italy
  8. Investing

    The 3 Largest Europe ETFs (HEDJ, VGK)

    Discover the range of investing strategies offered by the three largest Europe equity ETFs, including currency hedging and targeted equity geographies.
  9. Insights

    Deutsche Bank Will Fight Justice Dept.'s $14 Billion Fine (DB)

    The U.S. Department of Justice (DOJ) has ordered Deutsche Bank AG to pay $14 billion to settle claims of mis-selling mortgage-backed securities.
  10. Investing

    The Most Popular German Equity ETFs

    If you're looking to increase equity exposure to Europe’s strongest economy, German ETFs provide an attractive investment opportunity.
RELATED FAQS
  1. What are the most common market indicators to follow the Chinese stock market and ...

    Learn the most commonly followed market and economic indicators used by market analysts to track the Chinese stock market ... Read Answer >>
  2. Move from an OTC to a major exchange

    In order to move a company from over-the-counter market to a major exchange, a number of conditions must be met to being ... Read Answer >>
  3. Who are BMW's main suppliers?

    Learn more about BMW automotive production, including a list of some of the main automotive parts suppliers that BMW relies ... Read Answer >>
  4. Can stocks be traded on more than one exchange?

    A stock can trade on any exchange on which it is listed. A company can list its shares on more than one exchange, in a dual ... Read Answer >>
  5. What does it mean when my broker says that shares are for auction?

    An auction market is one in which stock buyers enter competitive bids and stock sellers enter competitive offers at the same ... Read Answer >>
Hot Definitions
  1. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  2. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  3. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  4. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  5. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  6. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
Trading Center