The Deutscher Aktienindex 100, usually known as DAX 100, is a price-weighted German stock index, and is part of the bigger group of German Stock Exchange indices.
As its name suggests, it is an index of the Germany’s top 100 stocks. Since this is a price-weighted index, the price per share plays an important role in the company’s position in the DAX 100. This listing includes a diverse selection of shares which are also highly-liquid. The DAX 100 price index is published by the German Stock Exchange.
Usually, though, DAX is used to refer to the DAX 30. This is a German blue-chip index, and includes shares which comprise more than three-fourths of the country’s economy. Being blue-chip shares, they are known for provide stability in earnings and regular dividends. These are big-cap shares, which, when combined with the mid-cap shares of the DAX 70, make up the DAX 100.
Xetra, the electronic trading system, is used to determine the prices on which the indexing is based. This is operated by the Deutsche Boerse, which asserts that the performance of Germany’s top 30 companies is measured based on both market capitalization and book volume.
The term L-DAX, on the other hand, refers to the Late DAX, which indicates the performance of the benchmark DAX after the Xetra closes. This is based on trading on the floor which takes place at the Frankfurt Stock Exchange.
Another example of a German index is the MDAX, which includes the 50 Prime Standards shares of companies which are not from the technology sector. These are also companies which have a lower rank than those in the DAX index.