The DAX is the main stock index of Germany. The name stands for Deutscher Aktienindex. The index tracks the performance of the 40 largest listed companies on the German stock exchange.
image_here
The DAX is often seen as the benchmark for the German economy.
The companies in the DAX are large and internationally active enterprises from various sectors, such as industry, technology and chemicals. The index is calculated based on market capitalisation, which means that larger companies have more influence on the level of the index. Because Germany is one of the largest economies in Europe, the DAX is also closely followed by international investors. Movements in the DAX often provide an indication of economic market confidence in Europe.
Short example:
Suppose the DAX stands at 15,000 points. If the large companies within the index rise by an average of 4%, the index may increase to approximately 15,600 points.
If the companies decline by an average of 4%, the DAX may fall back to approximately 14,400 points.
Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult a professional advisor when making financial decisions. The information and tips provided on this website are based on the personal insights and experience of our analysts and are intended for educational purposes only.