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

Leading rate in the credit market , LENDING RATES IN THE CREDIT MARKET ...

LENDING RATES IN THE CREDIT MARKET One of the crucial decisions involved while extending loans is the lending rate. Intermediaries will base their lending rate decisions on thr

Accounting rate of return (arr), Accounting Rate of Return (ARR): This ...

Accounting Rate of Return (ARR): This technique relies on the rate of return every project will earn over its life. It takes the help of accounting profit while calculating the

Implementation of the medium term expenditure framework, Question: (a) ...

Question: (a) Show how the Medium Term Expenditure Framework is superior to the traditional one-year presentation of the public sector budget. (b) What are the pre-requisite

Define the risk of cost of capital, Risk of cost of capital A straight...

Risk of cost of capital A straightforward assumption of traditional cost of capital analysis is that firm's business and financial risk are unaffected by acceptance and financ

Explain the meaning of - purchase consideration, Explain the meaning of - P...

Explain the meaning of - Purchase consideration The  type  of  offer  made  to  target  company's  shareholders  would have  a  big  impact on acceptance. Apparently the price

What is sinking fund, What is Sinking Fund A provision which requires t...

What is Sinking Fund A provision which requires the corporation to set aside a fixed amount every year to help provide for orderly repayment of the debt issue.

Approaches, Briefly discuss the three approaches to the short-term financin...

Briefly discuss the three approaches to the short-term financing problem and provide relevant examples of each?

Investment decision and financing decision, The Investment Decision: - Inv...

The Investment Decision: - Investment decision as well known as 'Capital Budgeting' is related to the selection of long-term assets or else projects in which investments will be m

Explain the capital market process, Question 1 State the key functions of ...

Question 1 State the key functions of the financial market. Question 2 Define "Bill of exchange". What are its features? Give different types of cheques. Question 3

Why are trend analysis and industry comparison important, Why are trend ana...

Why are trend analysis and industry comparison important to financial ratio analysis? Trend analysis assists financial managers and analysts see if a company's current financia

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