Frankfurt stock exchange, Financial Management

Assignment Help:

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.

 


Related Discussions:- Frankfurt stock exchange

Role of interest groups in public policy making, Question 1: Explain cl...

Question 1: Explain clearly why "Public Policy Making constitutes a major part of the work of the Government. Question 2: Consider the role of interest groups in public

Strategic management, Develop and implement strategic plan using bounce fit...

Develop and implement strategic plan using bounce fitness as case study

Define primary reserves of a bank, What are a bank's primary reserves? When...

What are a bank's primary reserves? When the Fed sets reserve requirements, what is its primary goal? Vault cash and deposits in the bank's account at the Fed are employed to s

Calculate the total extra annual cost, Question : (A) The following dat...

Question : (A) The following data for the current year relate to a sterile pack purchased by the Apollo Hospital: Annual demand                        90,000 units Ann

How cash budget and capital budget relate to pro forma, Explain how the cas...

Explain how the cash budget and the capital budget relate to pro forma financial statements. The cash budget depicts the projected flow of cash in and out of the firm for fixed

Explain process of financial control, Financial Control: - The establishmen...

Financial Control: - The establishment as well as use of financial control devices is an important function of financial management. These devices comprise: Budgetary Contro

Documenting the accounting system, Documenting the accounting system Th...

Documenting the accounting system There are 3 methods generally used to document the clients system. Narrative notes: Written description of the system Advantages:- C

What is the deferred tax asset or liability at the end yr, AB Corp expensed...

AB Corp expensed on the financial stmt $2,000,000 for depreciation expense during the year using straight line depreciation and deducted $3,000,000 of depreciation on the tax retur

Evaluate the fair value of the net assets, IFRS 3 Business combinations n...

IFRS 3 Business combinations necessitate goodwill on gaining to be calculated at the date control is gained. The second gaining gives ROB a 75% holding and consequently control o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd