Financial Dictionary -> investing -> DAX

The Deutscher Aktien 30 Index, otherwise known as the DAX 30, is a German stock market index that tracks the top 30 high cap companies listed on the German Frankfurt Stock Exchange, and is a good figure for representing the market performance as a whole. Using the Xetra trading system, the DAX 30 is calculated in almost real time, updating every 60 seconds. They use a free float weighted system, meaning only companies that have stocks freely available for the public to trade are listed.

Like the S&P 500 and the FTSE 100 in the UK, the DAX 30 is considered a very important economic figure and is quoted by most analysts and financial news outlets, as a way of summarizing the entire Frankfurt Stock Exchange's performance.

The DAX index was first created in 1988 with the standard base line of 1000 and past data to help. Today it represents around 75% of the entire Frankfurt Stock Exchange market capitalization.

To be included in the DAX 30, the company must have a valid listing on the Frankfurt Stock Exchange, have publicly traded stock with no limitations and must be within the top tier of total company capitalization.

Some of the companies listed on the DAX 30 as of 2009 include BMW, Adidas, Volkswagen Group and the Deutsche Bank.