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

Importance of a sinking fund, "The emphasis on the practice of good corpora...

"The emphasis on the practice of good corporate governance has brought about more negative than positive implications to public-listed companies". Do you agree with the above st

Define advantages and the disadvantages of a new stock issue, What are the ...

What are the advantages and the disadvantages of a new stock issue? A new stock issue increases funds and reduces the riskiness of the firm. It as well tends to send a negative

Define burden of a tax is shared by producers and consumers, The burden of ...

The burden of a tax is shared by producers and consumers.  Under what conditions will consumers pay most of the tax?  Under what conditions will producers pay most of it?  What det

Conversion price, It is the exercise price at which the investor or...

It is the exercise price at which the investor or the bondholder exchanges the bond for shares.

Explain money have time value, Why does money have time value? Positive i...

Why does money have time value? Positive interest rates point out that money has time value.  While one person lets another borrow money, the first person needs compensation in e

Meaning of capital budgeting, Meaning of Capital Budgeting Decisions r...

Meaning of Capital Budgeting Decisions relating to irreversible commitment of funds to projects whose profits are to be reaped over a time span longer than the current account

Treasury bonds, Bonds issued by the government are termed as treasury...

Bonds issued by the government are termed as treasury bonds. For example, dated securities issued by the government. These bonds are normally issued for longer ma

Evaluae new options within current organization, Q. Evaluae new options wit...

Q. Evaluae new options within current organization? Evaluating having completed self marketing successfully to prospective employers it is time to analyze new options within cu

Cost of equity share capital, Q. Cost of Equity Share Capital? Cost of ...

Q. Cost of Equity Share Capital? Cost of Equity Share Capital: - The cost of equity is the utmost rate of return that the company should earn on equity financed position of its

Modigliani-miller irrelevancy theorem for capital structure, QUESTION i...

QUESTION i) Discuss the Modigliani-Miller irrelevancy theorem for corporate capital structure. What assumptions underline the theorem? ii) What are the implications when the

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