Berlin Stock Exchange (XBER): What It Is, How It Works (2024)

The Berlin Stock Exchange (XBER): An Overview

The Berlin Stock Exchange (XBER), also known as the Börse Berlin, is one of the oldest stock exchanges in Germany, founded in 1685. It operates two trading systems, Xontro and Equiduct.

International investors use the XBER to trade in stocks, bonds, certificates, warrants, public funds, exchange-traded funds (ETFs), and exchange-traded commodities (ETCs).

Trading starts at 8 a.m.and operates until 8 p.m. Berlin time.

Trades are conducted in euros.

The Berlin Stock Exchange in Depth

The Berlin Stock Exchange has strong international leanings and claims to list the stocks of 15,000 companies from 82 nations. Most NASDAQ stocks are listed on XBER, as are major companies based in China and South Africa. Mutual funds and exchange-traded funds (ETFs) are traded as well. 

In addition to stock shares, the exchange lists foreign and domestic bonds. It is the only exchange listing some bonds issued by the German Federation and its constituencies.

Key Takeaways

  • The Berlin Stock Exchange, or Börse Berlin, is one of Germany's oldest markets, founded in 1685.
  • Many international equities, as well as German stocks and bonds, are bought and sold at Börse Berlin.
  • Trading is in euros.

The Berlin Stock Exchange operates two distinct marketplaces, one traditional and the second electronic:

  • Xontro is the trading and settlement system for XBER and all other floor exchanges in Germany. It is the traditional trading system for the Berlin Exchange.
  • ETS, operating under the brand name Equidict Systems Ltd., is the electronic trading platform and is responsible for XBER operations, maintenance, and future development of the exchange's trading system.

Notable Dates in XBER History

Dating from the 17th century, the German Stock Exchange was one of the world's most important stock exchanges, along with those in London and New York. Trading was halted throughout World War I. The stock exchange building was destroyed during World War II. A new headquarters for the exchange opened in 1955.

Today's exchange has global ambitions, with stocks and bonds from many nations attracting an international investing clientele.

1685: XBER is founded through an edict of Friedrich Wilhelm, Elector of Brandenburg, as a place for the city's guilds of chandlers and dressmakers to do business.

1739: The first formal trading session takes place.

1840: Railway shares are quoted for the first time. Banking and mining stocks follow over the next eight years. The onset of the Industrial Age has super-charged the German economy.

May 13, 1927

The date of the German Stock Exchange's "Black Friday."

1912: A metal exchange is added for trading in copper, zinc, lead, aluminum, and antimony.

1916-1918: The exchange is halted due to World War I.

1927: On May 13, the stock market collapses.The nation's enormous trade imbalance and economic policy missteps are largely blamed. The event will go down in history as Germany's Black Friday.

1931: Trading continues through the early years of the Great Depression, although a banking crisis forces two shutdowns lasting several months during the year.

1933-1945: With the Nazis firmly in power in Germany, various government interventions cripple the operation of the stock exchange. Jewish traders are banned. Share prices are fixed by government fiat. The exchange limps on through the war, until 1945.

1945: The exchange building is destroyed by the Allied bombing on Feb. 3, 1945.

1950: Trading resumes in temporary quarters.

1955: A new exchange building is dedicated.

1974: The exchange is enhanced with new computer technology. Transactions begin to be processed electronically and then, in the early 1980s, digitally.

1987: The Regulated Market and the Open Market are established as separate market segments.This eases restrictions on participation in the exchange.

1992: XBER begins to use the Xontro trading system.

1996: A new exchange building is opened on Berlin's Fasanenstrasse.

1997: XBER establishes its internet presence.

2009: The Equiduct system is launched.

Berlin Stock Exchange (XBER): What It Is, How It Works (2024)

FAQs

What is stock exchange question answer? ›

Stock Exchange is a place where securities are traded (bought and sold) according to specific rules and regulations. These rules are formulated by regulatory bodies which oversee the trading activities in stock exchanges. The securities traded in stock markets are shares, debentures and corporate bonds.

What is the Berlin Stock Exchange? ›

The Berlin Stock Exchange, or Börse Berlin, is one of Germany's oldest markets, founded in 1685. Many international equities, as well as German stocks and bonds, are bought and sold at Börse Berlin. Trading is in euros.

What is the stock exchange and how does it work? ›

A stock exchange is simply a marketplace where traders buy and sell stocks. (Some other types of investments—like exchange-traded funds (ETFs) and notes (ETNs)—are also traded on stock exchanges.) Some exchanges have physical locations—for example, the New York Stock Exchange (NYSE) located on Wall Street in Manhattan.

What the stock market really is and how it really works? ›

The stock market is where shares of companies and other financial instruments are bought and sold. It's a network of all-stock trading where investors and traders buy and sell stocks. These trades determine stock prices, reflecting the company's perceived value and market conditions.

What is a stock answers? ›

a stock answer: a pre-prepared response, a response which is always the same (for a particular type of comment or question) idiom.

What is the stock market answer? ›

The stock market is where investors buy and sell shares of companies. It's a set of exchanges where companies issue shares and other securities for trading. It also includes over-the-counter (OTC) marketplaces where investors trade securities directly with each other (rather than through an exchange).

What does Berlin trade? ›

The top exports of the Berlin economy include pharmaceutical products with a share of 14.7% (EUR 2.5 billion), other vehicles (EUR 1.7 billion), electricity generation equipment (EUR 1.4 billion), medical equipment (EUR 1 million) and power machinery (EUR 991 million).

Does Berlin have a market? ›

In a city as large as the German capital, it's no surprise that the weekly markets in Berlin span a wide range of specialities including art, antiques, food and seasonal specials.

What is the main stock exchange in Germany? ›

Frankfurt Stock Exchange is the largest of the seven stock exchanges in Germany. Deutsche Börse AG is repository of the FWB, which is regulated by public law. In this capacity it ensures the smooth functioning of exchange trading.

How does an exchange work? ›

An exchange centralizes the communication of bid and offer prices to all direct market participants, who can respond by selling or buying at one of the quotes or by replying with a different quote.

How does a stock exchange make money? ›

How stock exchanges makes money. The exchanges are for-profit ventures and charge a fee for the services they provide. Most of their revenue comes from the transaction fees charged for each trade made on their platform.

How does stock work? ›

Stocks are a type of security that gives stockholders a share of ownership in a company. Companies sell shares typically to gain additional money to grow the company. This is called the initial public offering (IPO). After the IPO, stockholders can resell shares on the stock market.

Is stock money real money? ›

Key Takeaways

Stocks are financial assets, not real assets. A financial asset is a liquid asset that gets its value from a contractual right or ownership claim.

Do stocks pay you money? ›

The stock pays dividends. Not all stocks pay dividends, but many do. Dividends are payments made to shareholders out of the company's revenue, and they're typically paid quarterly.

Can stocks really make you money? ›

The stock market's average return is a cool 10% annually — better than you can find in a bank account or bonds. But many investors fail to earn that 10% simply because they don't stay invested long enough. They often move in and out of the stock market at the worst possible times, missing out on annual returns.

What is the stock exchange in your own words? ›

Stock exchanges allow companies to raise capital and investors to make informed decisions using real-time price information. Exchanges can be a physical location or an electronic trading platform. Though people are typically familiar with the image of the trading floor, many exchanges now use electronic trading.

What is a stock exchange quizlet? ›

Stock Exchange. it is a place where stocks are bought and sold. This is known as trading stocks. A stock exchange can be a real, physical location (the building where trading takes place), but it can also be more of an idea, too.

What is the stock short answer? ›

A stock is a financial instrument which represents partial ownership of a corporation. Stocks are issued by companies in units called shares. Investors who buy the shares help the company raise funds, and in return the shareholder shares in the companies assets and profits.

What is stock exchange in one sentence? ›

A stock exchange is a place where people buy and sell stocks and shares. The stock exchange is also the trading activity that goes on there and the trading organization itself. [business] The shortage of good stock has kept some investors away from the stock exchange.

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