over 2 years ago • 1 min
Germany added 10 extra companies to its benchmark stock index this week. Yet even after the additions the market remains significantly smaller than neighboring France – and don’t even mention the US...
The DAX Index grew from 30 stocks to 40 on Monday, bumping up its value to $1.98 trillion. Yet, as the chart above shows, that still falls someway short of France’s CAC 40, which houses the same number of companies.
And the US stock market – by far the world’s biggest – only needs one representative to trump poor Germany: iPhone maker Apple alone is worth a stunning $2.4 trillion.
Despite Germany’s famous manufacturing clout and status as by far the largest economy in Europe, the nation’s stock market is relatively small. That’s partly because many of the medium-size firms that make up Germany’s economic backbone – the so-called Mittelstand – are family owned companies with no desire to list their shares publicly on the stock market.
Conversely, in the US, joining the stock market is almost considered a rite of passage as a company grows. And large firms that stay in private hands are much rarer.
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