CAC 40: Everything You Need to Know
What is the CAC 40?
The CAC 40 is a stock market index that tracks the performance of the 40 largest and most liquid companies listed on the Euronext Paris exchange. It is a widely followed benchmark for the French stock market and is often used as a barometer of the overall health of the French economy.History of the CAC 40
The CAC 40 was created in 1987 and has since become one of the most important stock market indices in the world. It is often compared to the Dow Jones Industrial Average in the United States and the FTSE 100 in the United Kingdom.The CAC 40 is calculated by taking the sum of the market capitalisations of the 40 constituent companies and dividing by a divisor. The divisor is adjusted each year to ensure that the index remains at a constant level. The CAC 40 is a free-float index, which means that only shares that are freely available for trading are included in the calculation. This helps to ensure that the index is representative of the overall performance of the French stock market.
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