DAX Index kinds information will be easier to understand if you revise the articles: The Dow Jones Industrial Average structure, Why is the Dow Jones Average so Popular, The Dow Jones Average
TecDAX. It’s the average of highly technological companies. Calculated on the basis of the most liquid companies in the sector of high technologies. The requirements to the companies for TecDAX rating correspond to the DAX indexing requirements. The foundation date – 30th December 1997, base index value – 1000.
MDAX. Medium index. Includes the stocks of 50 companies of the first grade in all economic sectors, followed by the first thirty of the best “blue counters” of Germany. The foundation date – 30th December 1987, basic index notion 1000.
SDAX. The index with rating lower than MDAX. Is calculated on the base of information of the companies occupying 81 – 130 position in the first rank companies rating. The foundation date is 30 December, 1987, basic index notion 500.
CDAX is a composite index, including the stocks of the companies of the first and the second ranks. The index reflects the common performance of the German fund market. The foundation date 30 December 1987, with the basic value 100.
The criteria for DAX, TecDAX, MDAX, SDAX indexes selection
In order to be indexed in a corresponding section, companies should meet the specific requirements depending on a certain index:
• all the stocks should be included to the first division
• all the stocks are to be constantly traded on Xetra e-stock
• the turnover of the stocks should constitute not less than 5%
• The MDAX and SDAX indexes assess the stocks of all economic sectors, in TecDAX – the stocks of all the countries in the “technology” sector
• have headquarters located in Germany or operations in Germany and headquarters in European Union, or be massively traded on the Frankfurt fund market.
