Bond indices that are calculated on the basis of the average values of the pricings from seven independent index providers.
iBoxx® indices represent the European bond markets. The real-time index family
comprises the iBoxx ? liquid indices, the iBoxx ? benchmark indices and the
iBoxx £ benchmark indices.
iBoxx ? index family contains real-time indices for fixed-interest
government bonds (in euros or any currency of the Euro Zone), sub-sovereigns,
collateralized bonds and corporate bonds. Within the iBoxx ? index family, the
iBoxx ? benchmark indices enable market participants to evaluate the euro bond
markets. iBoxx £ index family represents the government bond market in British
iBoxx ? liquid indices comprise a selection of the most liquid bonds from the
iBoxx ? benchmark indices. They are particularly suitable as a basis for OTC
and exchange-traded derivatives. Bond prices are supplied in real-time by ABN
AMRO, Barclays Capital, BNP Paribas, Deutsche Bank, Dresdner Kleinwort
Wasserstein, Morgan Stanley and UBS Warburg. An independent index provider,
Deutsche Börse consolidates those prices, calculating and distributing the
In the money
Term used to describe either a call warrant whose exercise price is lower than the market price of the underlying instrument, or a put warrant whose exercise price is higher than the market price of the underlying instrument.
A warrant that is in the money has a positive intrinsic value.
Broker who determines prices for securities in the Regulated Market and in the Unofficial Market.
Like exchange brokers, independent brokers arrange securities transactions between the banks that are represented on the stock exchange. In contrast to exchange brokers, however, they are only authorized to determine prices in the Regulated Market and in the Unofficial Market, and not in the Official Market. They can trade for their own account, although they usually liquidate their positions at the end of each trading session.
Independent brokers are admitted to trading by the exchange operating board. They must demonstrate that they are responsible and reliable, and that they possess the necessary aptitude for exchange trading.
Statistical instrument that represents the development of prices and volumes.
All indices calculated by Deutsche Börse:
stock indices and
bond indices .
Investment product directly linked to an index
With Index certificates investors can participate one-to-one in the development of an exchange index ? without actually buying the underlying shares in that comprise that index. Every index certificate has a subscription rate (e.g., 1:10 or 1:100) that defines the value of the certificate in relation to the index listing. The investor invest broadly diversified and transparently with minimal effort and smaller amounts.
If the underlying share increases in value, the value of the certificate increases in analog to the gain; with every setback, the certificate value declines accordingly.
Investors should think about currency risks when investing in index certificates that track a share index outside of the euro zone. And they should pay attention to whether the underlying index is a performance or price index. With a performance index, all dividends and profits from subscription rights flow into the index value. In contrast to that, price indices show the pure development of the shares and thus the price declines that usually accompany dividend payouts.
Index certificates are particularly interesting to investors that want to profit from positive capital-market developments, but who don?t want to deal with the daily price developments of several individual shares.
Details about currently traded investment product types .
Fund that mirrors the composition of a particular stock index
Like individual stocks, index funds can be traded on the exchange in
The performance of an index fund generally matches that of the benchmark
index. Dividends are paid to the investor, and the administration costs of an
index fund are usually lower than those of an ordinary mutual fund. One
advantage of index funds is that they provide for greater diversification of
risk than investors can achieve by purchasing individual stocks. Unlike index
certificates, index funds do not have a maturity period, and thus there is no
risk to the issuer.
All Exchange-Traded Funds
Median between bid and ask quote in no-spread trading for private investors; price at which the lead broker is able to execute an order at the given point in time.
The indicative price represents the median of the current estimate, which is
usually comprised of a bid and an ask quote. As a rule, investors buy at the
higher bid price and sell at the lower ask price. In no-spread trading on the
Frankfurt Stock Exchange, the lead brokers offer execution at the spread
median, the indicative price.
If the indicative price is not shown, the lead broker is in the progress of
determining the price. In this case, simply refresh the page.
These terms apply for all DAX® shares for an order volume up to ?10,000. For
MDAX® shares, the order volume may be up to ?5,000; orders in SDAX® and
TecDAX® titles may have a volume of up to ?3,000. Usually, if the market
situation permits, the lead brokers may also execute larger orders at the
For titles with a price of less than ?5, the indicative price, at which the
lead broker will try to execute, will be shown. However, these shares ?
currently ten out of 160 ? are not included in this voluntary commitment.
Estimates are published by the lead brokers in floor trading on the basis of
the current order situation and under consideration of the reference market.
For the 160 titles, this reference market is Xetra until 5.30 p.m. In evening
trading, the trading floor itself the market place with the largest turnover.
The estimate informs about the price level at which an exchange price could be
fixed. It is non-binding and does not present an offer to buy.
Form of custody in which a client's securities are held under his own name in a separate individual account
Securities held in individual custody are kept separate from those owned by the bank or by third parties. This form of custody is used if the securities in question are not admitted to collective custody by a securities clearing and deposit bank, or if the client requests it. The name of the owner is printed on a strip of paper which is wrapped around the securities to keep them together. The certificates and the coupon sheets are separated for security purposes. The client is responsible for any costs associated with this form of custody.
From the client's perspective, the advantage of individual custody is that he can receive the original shares he delivered to the bank. He retains ownership of his specific shares.
Regulations on individual custody are contained in the section 2 of the German Securities Deposit Law (effective on 4 February 1937) and in the terms and conditions of the bank groups.
Antonym: collective custody
Companies in Prime Standard categorized by core business field
Companies listed in Prime Standard are sorted into industry groups by their core business fields. There are 62 industry groups in total, based on which companies are included in the 18 Prime Standard sector indices.
Initial Public Offering (IPO)
Process by which a company becomes listed on an exchange
A company usually prepares and executes an IPO with the support of an issuing bank, or, in the case of large-scale issues, in conjunction with a syndicate.
Companies go public primarily as a means of raising additional equity capital and as an exit channel for the original capital providers (e.g., venture capital companies). Additional benefits of an IPO include a higher profile for the issuing company and a broader investor base. It is more advantageous for a company to go public during a bull market because this increases the likelihood that all new shares will be purchased, thereby lowering the cost of capital for the issuer.
Person who, owing to his/her position or occupation, has access to non-public information regarding company developments
According to sections 13 and 14 of the Securities Trading Act, enacted on 26 July 1994, insiders are persons who,
as members of the executive or supervisory bodies, or as personally liable partners of either the issuer or a company affiliated with the issuer;
as investors with an equity participation in the issuing company or a company affiliated with the issuer; or
owing to their profession, activities or tasks, have access to inside information.
Inside information is any knowledge pertaining to an issuer of insider securities, or to insider securities themselves, that has not been made public, and which could have a considerable impact on the price of the insider securities if it were publicly announced. Insiders who abuse this situation by trading on the basis of such knowledge create unfair advantages for themselves with respect to other market participants. For this reason, the Securities Trading Act provides for a ban on insider trading. A violation of this ban is punishable with a prison term of up to five years or a fine.
The Securities Trading Act differentiates between persons with direct access to inside information (primary insiders) and those who have acquired inside information indirectly (secondary insiders).
Exchange trading and OTC trading in insider securities is constantly monitored by the Federal Supervisory Office for Securities Trading (BAFin).
One of the components of a warrant premium
The warrant premium is the sum of two values: the intrinsic value and the time value. On the expiry date, the time value is zero, and thus the value of the warrant is equal to its intrinsic value.
The intrinsic value is calculated by subtracting the exercise price from the current price of the underlying security and multiplying the result by the exercise ratio.
The assets of an investment company that are invested in securities or real estate
Funds pool the assets of many investors and invest them in stocks, bonds, and other instruments, which enables investors to invest in a wide variety instruments with a small amount of money. Distributing risk among many different instruments reduces the overall risk for investors. Funds are the investment of choice for investors who do not want the burden of constantly monitoring their investments, and who prefer to leave the task of tracking and analyzing the market to professionals.
A fund is managed by an investment company. The fund's assets are kept in custody at a depositary bank. Investors can buy or sell shares through the investment company itself or on the stock exchange. In most cases, the shares carry a load to cover marketing costs. Income in the form of dividends or interest is either paid out to the shareholder or reinvested.
The value of a share is calculated by dividing the fund's total assets by the number of outstanding shares. If the value of the investments held by the fund increases, the fund's total assets increase, and in turn, the value of the shares goes up.
Two categories of funds, retail funds and special funds, are each geared to a different group of investors. A further distinction is made between open-end and closed-end funds; a closed-end fund issues a fixed number of shares.
Fund with a limited number of outstanding shares
Investment trusts are closed-end funds, and thus issue a limited number of shares. Once this number has been reached, the fund is closed. The investment company is not obligated to buy back shares, although investors can sell their shares on the stock exchange if the investment company refuses to redeem them. Closed-end funds are especially popular in the US and the UK.
Synonym: Closed-end fund
A company's efforts to communicate with current and potential shareholders
Investor relations (IR) provides current and potential shareholders with information about a company. The goal of IR is to promote long-term ties between shareholder and company via measures such as road shows, analysts' conferences, shareholder newsletters, the presentation of the financial statements, ad campaigns, company brochures, etc.
The floating of securities by a corporation or an entity
An issue is typically effected via an underwriting syndicate, although some companies also opt for a direct offering.
The advantage of issuing securities with the support of a syndicate is that the issuer can utilize the syndicate bank's existing business connections to the investing public and its extensive sales system for placing the securities. As a rule, the syndicate purchases the entire issue from the issuer at the underwriting price and re-sells the securities to investors at a slightly higher price, also called the offering price. In doing so, the syndicate assumes the risk associated with the placement of the securities.
The underwriting method is especially suited for large-scale international issues. Recently, global issuing syndicates have begun to form to handle the worldwide placement of securities (e.g., the offering of shares by Deutsche Telekom AG); these syndicates have regional sub-syndicates (e.g., for the regions of Europe, North and South America and Asia).
Company or institution that issues securities and, in some cases, floats them on the exchange
Stocks are typically issued by stock corporations, while bonds can be issued by both private-sector companies and entities under public law. For example, the Federal Republic of Germany is an issuer of federal government bonds.
Some companies or entities, such as the public authorities or real-estate credit institutions, issue securities on an ongoing basis; they are referred to as tap issuers.
The initial price of a newly issued security determined off the exchange by the issuing company
In recent years, the bookbuilding method has become a widely used procedure for determining issuing prices.