German shares are controlled by the German stock exchange and can be traded through the Xetra electronic system. When talking about the stock exchanges, it can be said that this is one of the largest in the world. This is due to its market capitalization and turnover.
Among the most famous German stocks are IFC Markets, followed by Volkswagen and Siemens. Also among the recommended German stocks are Deutsche Bank stocks, Deutsche Lufthansa stocks, and many more.
For financial experts, Germany is far ahead of the United States. This is due to its competitiveness in the economy and allows it to perform well in the stock market. The German Stock Market offers a wide variety of investments for you to choose the best German Stocks.
Because these German stocks are highly valued on the international market, they have domestic and foreign investors. Likewise, different indexes are available for continuous monitoring. Thanks to these indices, investors can navigate to carry out technical analysis.
On the German Stock Exchange, you will find the following indices.
Dax 30
This market index tracks the shares of the 30 largest companies in Germany, and they are listed on the Frankfort Stock Exchange. Some of the companies that make up this index are Bayer, Adidas, BMW, and many more.
TecDax
This stock index is also in charge of tracking the most important German companies that belong to the technology sector. When comparing the order book of companies, they rank below companies that are in dax30.
Mdax
It is calculated by Deutsche Borse and comprises the stock index of German companies. In this index, there are 50 companies with international transparency, and they are located below the Dax index.
Sdax
This stock index is made up of 50 small and medium-sized companies that belong to Germany. These companies are below MDAX shares in terms of value.
Through which indices can you track German stocks?
To keep an eye on German Stock dividends, you can track them through different indices. Dax 30, TecDax, Mdax, and Sdax are available.
In the German stock market, you can see many companies interacting in the capital markets. And this could cause a bit of confusion when choosing the most suitable options for your portfolio.
Likewise, among the main German stocks, there are equity funds, and their management is fully active. Therefore this would be a good investment option and would not be as focus on stock indices or industrial sector, or company size.
Consider the following example. Experts on German company stocks know which ones are the most promising. And to achieve this, they take into account the balance sheets of the different companies and the potential they have in the market.
How is the interaction of the German stock market?
The percentage of retention of dividends in German stocks is considerable, and that is why these German stocks are well regarded. The German stock market has managed to make a good recovery in recent years. However, there is the possibility that there will further rise.
This is because stocks are highly valued, even much more so than US stocks. The 30 most important companies in Germany interact at the Dax, and their price-benefit ratio is 12.6. This means that it is a good figure compared to companies that are listed on the US market.
Why are investors betting on German stocks?
Buying German Stocks can be a great idea as long as you know the right time. The taxation of German stocks is very flexible, and that is why in recent years, many German investors have invested in this exchange.
There are also other positive reasons for investors to have a good outlook on this stock market. Long-term equities and low-interest rates make these German stocks very eye-catching.
For example, during 2018, German investors increased considerably, and this has continued to date. Likewise, the taxation of dividends on German stocks has also made many foreigners prefer to invest in German stocks.
Data from the German Frankfurt Stock Exchange also show that indirect investments have also performed well. At the same time, direct investments have had a decline.
In the German stock exchange history, it is shown that German stocks have always been eye-catching. Above all, because these shares are listed on the Frankfurt Stock Exchange, and it takes place on the German Stock Exchange hours by sessions held from Monday to Friday. Specifically from 9:00 am to 5:30 pm.
Stock exchanges in Germany
How many stock exchanges are there in Germany? In Germany, seven stock exchanges interact, although the most important is the Frankfurt Stock Exchange. This bag is considered one of the most efficient in the world since it has an official secondary market.
The German Stock Exchange history reflects how the Frankfort Stock Exchange is so prestigious and is in the first places along with the New York Stock Exchange and Nasdaq.
Three hundred thirty businesses are listed on the Frankfurt Stock Exchange, 160 of which are foreign. And 90% of stock trading takes place on the German market. So, UK shares and Lufthansa shares are very attractive on this German stock exchange.
It is important for investors to be listed on a stock market that can bring benefits. For this reason, the German stock exchange is highly relevant internationally. Germans and foreigners trust the stocks that are interacting in the German stock index.
