No matter what index is talking about, the commentators and journalists always speak of points and their changes. What it is about how they are measured and where they come from, more than in the following.
The Dax – Germany’s leading index and its history
The ARD education format Planet Wissen simply explains that an index is a common, summarized value of several companies. The big ones of these indices are called lead indices. Such is the German stock index Dax.
According to information from the German Stock Exchange, the DAX records around 80 percent of the total market capitalization of German stock corporations. In addition, he depicts about 90 percent of the volumes traded on German stock exchanges. The total value of all DAX shares and the courses of the relevant companies are included to calculate the indic.
The news portal T-online reports that the German stock index was launched by a then journalist from the Börsen-Zeitung. Reporter Frank Mella should design an index for the German market. The idea was so well received by the experts that the DAX established itself.
Points as an indicator of index performance
The points of an index essentially indicate the change. So you can see to what extent the index has developed positively or negatively. The change in the number of points thus reflects the general performance of the stocks contained in the index.
It is important that the points relate to an initial value that was defined at the beginning. T-online also explains that the DAX was set in 1987 without a special background to 1,000 starting points.
Editor finance.net
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