- The CAC 40 is the benchmark equity index for public companies traded on the Euronext Paris.
- The index is made up of the largest 40 companies listed in France screened by market capitalization, trading activity, size of balance sheet, and liquidity.
- The multinational reach of the companies listed on the CAC 40 makes it the most popular European index for foreign investors.
CAC 40 (Cotation Assistee en Continu 40), is the benchmark index for the French Stock market. It presents the most accurate indication of French economy, as it consists of the top 40 of the 100 highest market-capitalization company stocks traded on the Euronext Paris, which is the second largest exchange in Europe.
The CAC 40 started with a base value of 1,000 in December 1987 and continued to operate on a total market capitalization system until 2003 when it was changed to a free float-adjusted market capitalization methodology.
CAC 40 stands for Cotation Assistée en Continu, which translates in English to “continuous assisted trading”, and is used as a benchmark index for funds investing in the French stock market. The index also gives a general idea of the direction of the Euronext Paris, the largest stock exchange in France formerly known as the Paris Bourse.