Frankfurt stock exchange, Financial Management

Frankfurt Stock Exchange

The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwig, the German King granted the city of Frankfurt the preferential right to hold an annual autumn fair. Since the year 1330, when Emperor Ludwig expanded this privilege to include a spring fair as well, the city became an important center for commercial and monetary transactions. As a result of the trading occurring during the fair, the goods manufactured against specific customer orders gradually developed into merchandise production for an open and nationwide sales market.

Industrial Revolution in Germany brought to light the advantage of financing costly projects through share issues. The first share issue - a participating certificate of the Österreichische National Bank - was traded in Frankfurt way back in 1820.
Following the collapse of the Nazi regime in 1945, the stock exchange remained initially closed for half a year. Nevertheless, it was again reopened in September 1945 as one of the first German stock exchanges.

It was only following the currency reforms of 1948 and the growing consolidation of the German economy that the Frankfurt Stock Exchange gradually recovered its old significance. Beginning in 1956, the purchase of foreign securities was again permitted in Germany. Frankfurt could accordingly return to its tradition of international business, again occupying the top position in Germany.

The stock exchanges played an important role as capital intermediaries for the country's post-war reconstruction.

The Frankfurt Stock Exchange has continuously taken the prevailing economic needs and developments of the country into account in recent decades. For example, the first central transaction via computer in Germany was booked in Frankfurt in 1969. The Frankfurt Stock Exchange developed the DAX share index, which was launched in 1988 and is today one of the world's most important share indices. In 1993, the newly established Deutsche Börse AG assumed sponsorship of the public sector Frankfurt Stock Exchange. In order to create an appropriate trading environment - in particular for young, rapidly growing and future-oriented industries such as telecommunications, biotechnology, multimedia, and environmental technology - on March 10, 1997 the "Neuer Markt" was opened as a new trading segment on the Frankfurt Stock Exchange. In view of the great importance of international trading, in November 1997 the new Xetra® Electronic Trading System was introduced for German and cross-border securities trading in Frankfurt. With Xetra, market participants were able to deal in about 20,000 securities from anywhere in the world. In November 1998, Gruppe Deutsche Börse laid the foundation stone for a new stock exchange building.

 

Posted Date: 9/10/2012 5:50:22 AM | Location : United States







Related Discussions:- Frankfurt stock exchange, Assignment Help, Ask Question on Frankfurt stock exchange, Get Answer, Expert's Help, Frankfurt stock exchange Discussions

Write discussion on Frankfurt stock exchange
Your posts are moderated
Related Questions
Do you provide assignment help on Miller and Modigliani Model? Do you have experts in this topic? I have an assignment and it is tough to solve me. Please suggest me if you can giv

The wide gap between maturities poses problems in using the on-the-run issues, especially after five years. Some dealers and vendors use selected off-the-run Trea

WAYS AND MEANS ADVANCES (WMAs) WMA is not a permanent source of financing government deficit. But, this is likely to provide greater autonomy to the RBI in conducting monetary

you are checking a financial analyst''s recommendation. the analyst projects a company''s stock price to be P72 per share in 3 years. the most recent annual dividend was P1.68 per

CORPORATE GOVERNANCE Corporate governance can be stated in different ways, for example: The Private Sector Corporate Governance Trust (PSCGT) defines that corporate governan

GENERAL FUNCTIONS Several functions of financial management currently range from planning of funds to distribution of earnings and also are extend beyond.  Some of the well-kn

The equity accounts for Hexagon International are as follows: a.    If Hexagon stock currently sells for $50 per share and a 20% stock dividend is declared, how many new s

How does continuous compounding benefit an investor? The effect of enhancing the number of compounding periods per year is to increase the future value of the investment.  The

The Oasis Report Amidst all these problems, the Ministry of Social Justice and Empowerment constituted a committee with a view to improve old-age social security in the country

Q. Dividend Yield plus Growth in Dividend process? Dividend Yield plus Growth in Dividend process: - This process is used to compute the cost of equity capital when the dividen