DAX is an index that tracks the rise and fall of major stock prices on the German stock market. Deutsche Börse AG, the German stock exchange, operates the DAX. It is a calculated figure used to represent the movement of share prices on a stock market. The DAX’s full name is the Deutschen Aktienindex (German Stock Market Index). The DAX was introduced in 1989.
The DAX traces the price movements of 30 German blue chip stocks. Blue chip stocks are stocks issued by well-established corporations, usually with a high market value and considered relatively safe for investment. The DAX selects stocks based on turnover (amount of trade) and market capitalization (estimated value). The index is updated every 15 seconds during trading hours.
The DAX is only one of several stock indexes published by Deutsche Börse AG. The MDAX is a midcap index, tracking the prices of stocks below the top grouping. The SDAX tracks the stock prices of smaller companies. The TecDAX tracks leading technology companies. DAX, MDAX, SDAX, and TecDAX are registered trademarks of Deutsche Börse AG.
See also Dow Jones averages; Financial Times Stock Exchange Index; Investment; Stock; Stock exchange.
