What is the DAX Index?

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

How Does the DAX Index Work?

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 Does the DAX Index Matter?

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.'

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