Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

DAX Index

What it is:

The DAX Index is the most commonly cited benchmark for measuring the returns posted by stocks on the Frankfurt Stock Exchange.

How it works (Example):

Started in 1984, the DAX index is comprised of the 30 largest and most liquid issues traded on the exchange. It is a performance-based index, which means that any dividends and other events are rolled into the index's final calculation.

DAX measures performance in terms of order book volume and market capitalization.

Why it Matters:

The DAX is the Frankfurt Stock Exchange equivalent of the DJIA for the New York Stock Exchange. The Frankfurt Stock Exchange is one of the largest in Europe and, accordingly, worldwide.

DAX stands for "Deutscher Aktien Index," in English, the "German Stock Index."

Related Terms View All
  • Take a Flier
    John Doe starts his own business. He looks for angel investors to give him seed capital....
  • Delivery Price
    Upon the expiration of a futures contract, the underlying commodity is delivered to the...
  • Nakahara Prize
    The board of directors of the Japanese Economic Association determines who wins the...
  • Self-Insure
    Let's say John Doe owns a restaurant. He buys property and casualty insurance that only...
  • Obligation Bond
    The face value of an obligation bond is usually larger than the value of the property...