how does the dax calculate prices?

Answer 1

"Being conceived as the leading German stock index, at its introduction in 1988 the DAX was the only representative of what during the subsequent years became a family of stock market indexes. Besides the DAX, the German Stock Exchange publishes the XETRA-DAX, which is a calculation based on the early-morning opening (that is the pre-physical market trading) and late-afternoon close (that is, the post-physical market trading) of the 30 DAX stocks in the XETRA electronic trading system. In addition, the German Stock Exchange index family now comprises the DAX 100, the midcap index MDAX, and the Composite DAX (CDAX), which is subdivided into 16 branch indexes.

Since the DAX is constructed as a Laspeyres type index, to counteract the obsolescence of the index sample the base is annually recalculated and the new series of index numbers is spliced to the previous one. It is the merit of the DAX that it paved the path for the concept of a total return index to be accepted as a benchmark for the price development on a major stock exchange. Furthermore, the DAX was the first performance index ever that served as an underlying for derivatives trading."

Answer 2

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