DAX 30

DAX 30: translation

   This is the most widely followed German stock index although it only consists of 30 blue-chip equities and is considered too narrowly based for performance measurement purposes. Like the S&P 500, the CAC-40 and the FTSE 100, this index is a market capitalization-weighted average index, rather than a simple average.

   Unlike these other indices, which only measure change in market prices, the DAX attempts to measure the total return on German equities. In particular, the DAX includes dividend income and notionally reinvests any dividend income in additional equities in the same proportion as the index. Even if there is no net change in German equity prices it is possible for the DAX to rise because of the added value of an inflow of dividend income. Futures and options contracts on the DAX 30 are listed on EUREX.

   ■ www.exchange.de ■

   ► See also Capitalization-weighted Index, EUREX.