The DAX (an abbreviation of Deutscher Aktienindex) is a stock market index made up of 30 major German companies traded on the Frankfurt Stock Exchange – the largest of Germany’s stock exchanges and among the largest trading platforms for securities on the planet. The DAX index components make up close to three-quarters of the market capitalization on the Frankfurt Stock Exchange. It was founded on the 1st of July, 1988 and is operated by the Deutsche Börse, a financial services company that serves as both a marketplace provider and financial services provider The DAX serves as a counterpart to the UK’s FTSE 100 and the American check out our guide Dow Jones Industrial Index and as it measures the performance of the 30 largest companies on the Frankfurt Stock Exchange, it serves a good indicator of the health of the German economy and the trend of investor sentiment. The components of the DAX index, as previously mentioned, are the 30 largest companies on the market that are publically traded. The board of the Deutsche Börse meets every quarter based on Fast Entry and Fast Exit rules, and every September based on Regular Entry and Regular Entry rules, in order to determine of companies should be added to the DAX index, or dropped from the index. Companies to be added to the DAX index must meet the following requirements: they must be listed on the Prime Standard for at least 3 years prior to inclusion, 10% minimum free float and must have their legal or operating headquarters in Germany. Foreign companies must have a registered office in Germany as well as have a focus of trade on Xetra. Potential components are assessed based on their free-float market capitalization, and order book volume in comparison to existing DAX Index components, availability of early opening prices, and turnover.