What is the Prime Standard?
The Prime Standard refers to that sector of the Frankfurt Stock Exchange on which are listed companies that comply with a higher standard of disclosure and reporting than that required by German law. All companies included in Germany's blue-chip DAX index must meet Prime Standard requirements.
Where have you heard about the Prime Standard?
As an investor, you may well have come across the Prime Standard when looking into the possibilities of investing in companies in Germany, the economic powerhouse of the European Union. Your financial adviser may have mentioned the Prime Standard in this regard.
What you need to know about the Prime Standard.
Deutsche Borse says of the Prime Standard: '[It] sets the very highest transparency requirements of all segments at...the Frankfurt Stock Exchange and, indeed, in all of Europe.' Prime Standard companies are required to publish quarterly reports, to apply international accounting standards, produce a financial calendar and hold at least one conference for investment analysts each year. All disclosures must be in English as well as German thus, says Deutsche Borse: 'The Prime Standard is...the right choice for issuers who in particular want to appeal to international investors.'