Frankfurt Stock Exchange facts for kids
| Frankfurt Stock Exchange | |
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Quick facts for kids
Frankfurter Wertpapierbörse
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| Boerse Frankfurt.svg | |
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| Type | Stock exchange |
| Location | [[Frankfurt, Hesse]], Germany |
| Coordinates | 50°06′55″N 8°40′40″E / 50.11528°N 8.67778°E |
| Founded | 1585 |
| Owner | Deutsche Börse, Börse Frankfurt Zertifikate AG |
| Currency | Euro |
| MarketCap | US$2.37 trillion (March 2023) |
The Frankfurt Stock Exchange (German: Börse Frankfurt) is a very important place in Germany. It's like a huge marketplace where people buy and sell parts of companies, called stocks, and other investments. It's one of the oldest stock exchanges in the world, starting way back in 1585! Today, it's also one of the biggest. You can find it in the city of Frankfurt, Germany.
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How the Exchange Works
The Frankfurt Stock Exchange is owned and run by a company called Deutsche Börse AG. It's located in the busy financial heart of Frankfurt. This exchange is the largest of its kind in Germany. Most of its business happens right there in Germany.
The exchange uses special lists, called indices, to track how different groups of stocks are doing. Some of the most famous indices here are DAX, MDAX, and TecDAX. These help people understand how the market is performing overall.
Trading on Xetra and Börse Frankfurt
The Frankfurt Stock Exchange has two main ways that people trade stocks:
- Xetra is a super modern electronic trading system. It's where most of the trading for German stocks happens. In fact, about 90% of all stock trading in Germany goes through Xetra! It's also very important for tracking the DAX index, which is Germany's most famous stock market index. Trading on Xetra happens from 9:00 a.m. to 5:30 p.m. on trading days. Many traders from different countries connect to Xetra from their computers.
- Börse Frankfurt is another trading place, mostly for individual investors. Here, you can find over a million different types of investments from Germany and other countries. Special people called "specialists" work on the trading floor to help manage the buying and selling of these investments.
Keeping Trading Fair and Safe
Trading at the Frankfurt Stock Exchange has clear rules that everyone must follow. This helps keep things fair for all traders. There are special groups that watch over the market to make sure everything is done correctly. These include the Trading Surveillance Office and government authorities.
To make sure prices are stable and to prevent mistakes, the exchange has several safety features. These include systems that can pause trading if prices change too quickly. This helps to avoid big problems and keep the market running smoothly.
A Look Back at History
The story of the Frankfurt Stock Exchange began a long, long time ago, in the 11th century! Back then, Frankfurt was a busy city with big trade fairs. By the 1500s, it was a rich city known for trade and money.
In 1585, a special place was set up to fix the exchange rates for different currencies. This is seen as the official start of the stock exchange. Over the next few centuries, Frankfurt became one of the first major stock exchanges in the world, alongside cities like Amsterdam, London, and Paris. Famous bankers, like Mayer Amschel Rothschild, played a big part in its growth.
In 1879, the Frankfurt Stock Exchange moved into its new building. It became a very important financial center in the world during the late 1800s.
After World War II in 1949, the Frankfurt Stock Exchange became the leading stock exchange in Germany. This brought in lots of new investments from Germany and other countries.
In the 1990s, the exchange was also known for the Neuer Markt (New Market), which was part of the worldwide "dot-com boom" when many internet companies started.
In 1993, the Frankfurt Stock Exchange became part of Deutsche Börse AG, the company that now runs it.
For many years, the exchange benefited from being close to the Bundesbank (Germany's central bank). Since 2002, when the euro currency was introduced, the exchange has also benefited from the European Central Bank being in Frankfurt.
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See also
In Spanish: Bolsa de Fráncfort para niños
