The DAX40 (Deutscher Aktienindex) is a stock market index that tracks the performance of the 40 largest German companies listed on the Frankfurt Stock Exchange. The components are chosen based on their free-float market capitalization. It is Germany's most important stock index, but it is also widely followed by traders and investors worldwide, owing to Germany's significant role in the global economy.

The index was established on July 1, 1988, and it began trading at 1163 points. It is frequently regarded as an important indicator of the state of the German economy because it includes some of the country's most important corporations. The DAX is Germany's equivalent to the Dow Jones in the US.

The DAX 40, also known as the Deutscher Aktienindex 40, is the benchmark stock index of the Frankfurt Stock Exchange in Germany. It represents the performance of the 40 largest and most liquid companies listed on the exchange. These companies are considered blue-chip stocks and cover various sectors, including finance, manufacturing, technology, and healthcare.

The DAX 40 serves as a key indicator of the German stock market's overall health and is closely monitored by investors and analysts worldwide. It includes well-known multinational corporations such as Volkswagen, Siemens, and SAP. The index is weighted by market capitalization, meaning that larger companies have a more significant impact on its movements.

As a leading economic indicator for Germany and the Eurozone, the DAX 40 influences global financial markets. Investors use its performance to assess the economic climate in the region and make strategic investment decisions. Overall, the DAX 40 is a critical tool for tracking the performance of major German companies and understanding broader economic trends.