Posted in Finance, Accounting and Economics Terms, Total Reads: 284
Definition: Dow Jones Euro STOXX 50
The Euro Stoxx 50 Index is a stock index by Deutsche Borse Group and Six Group. It was designed to cover the top 50 stocks from different Euro countries which would give a blue chip representation of the super sector leaders in the Euro zone. It covers 12 countries namely: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain.
This index is licensed to serve as underlying for different investment instruments such as Exchange Traded Funds (ETF), futures and options and various forwards worldwide.
From this index, different sub indices are derived such as, Subindex France, Euro Stoxx 50 Subindex Italy and Spain which cover companies of France, Italy and Spain respectively. The following chart shows the performance of different companies in the year.
The companies are selected based on their historical performances and are ranked based on size and added to the list. The top 40 are selected from this list and the best performing companies in the previous years are selected for 41 to 60 and the best 50 companies are selected.
The size is calculated based on the free float market cap in the 12 Euro zone countries. This index represents about 60% of the total stocks in the 12 countries.