The CAC 40: A Key French Stock Market Index
Overview
The CAC 40 is a benchmark French stock market index. It represents a capitalization-weighted measure of the 40 most significant stocks among the largest and most actively traded shares listed on the Euronext Paris exchange. The index is widely followed by investors and analysts as a barometer of the performance of the French economy.
Components and Calculation
The CAC 40 index is calculated using a free float market capitalization-weighted method. This means that the index tracks the performance of the 40 largest and most liquid stocks in the French market. The index is reviewed and revised quarterly, with changes made to the composition of the index to reflect changes in the market.
History and Performance
The CAC 40 index was launched in 1988. Since then, it has been a key benchmark for the performance of the French stock market. The index has outperformed the broader French market over the long term, providing investors with a higher return.
Comments