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
  • Zoning
    Zoning typically delineates areas within a town acceptable for residential construction,...
  • Interchange Rate
    An interchange is an electronic transfer of information. In the business world, this...
  • Lien Sale
    Let’s assume John Doe owns a house in the country and the annual property taxes are $4,...
  • Vernon L. Smith
    Born in 1927 in Wichita, Kansas, Vernon L. Smith earned an engineering degree from Cal...
  • Wallflower
    Usually used to describe individuals who are relegated to the sidelines in social events...