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The CAC 40 (french: CAC quarante ) (''Cotation Assistée en Continu'') is a benchmark French
stock market index In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance. Two of the ...
. The index represents a capitalization-weighted measure of the 40 most significant stocks among the 100 largest market caps on the
Euronext Paris Euronext Paris is France's securities market, formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon, and Brussels exchanges in September 2000 to form Euronext NV. As of 2022, the 795 companies listed had a combined market ...
(formerly the Paris Bourse). It is a price return index. It is one of the main national indices of the pan-European stock exchange group Euronext alongside Euronext Amsterdam's AEX,
Euronext Brussels The Brussels Stock Exchange (french: Bourse de Bruxelles, nl, Beurs van Brussel), abbreviated to BSE, was founded in Brussels, Belgium, by decree of Napoleon in 1801. In 2002, the BSE merged with the Amsterdam, Lisbon and Paris stock exchanges ...
'
BEL20 The BEL 20 is the benchmark stock market index of Euronext Brussels. It tracks the performance of 20 most capitalized and liquid stocks traded in Belgium. In general, the index consists of a minimum of 10 and a maximum of 20 companies traded ...
, Euronext Dublin's
ISEQ 20 The ISEQ 20 is a benchmark stock market index composed of companies that trade on Euronext Dublin. The index comprises the 20 companies with the highest trading volume and market capitalisation contained within the ISEQ Overall Index. The index ...
, Euronext Lisbon's
PSI-20 The PSI-20 (an acronym of Portuguese Stock Index) is a benchmark stock market index of companies that trade on Euronext Lisbon, the main stock exchange of Portugal. The index tracks the prices of the twenty listings with the largest market capita ...
and the
Oslo Bors Oslo Stock Exchange ( no, Oslo Børs) (OSE: OSLO) is a stock exchange within the Nordic countries and offers Norway’s only regulated markets for securities trading today. The stock exchange offers a full product range including equities, deriv ...
OBX Index The OBX Index is a stock market index which lists the 25 most liquid companies on the main index of the Oslo Stock Exchange in Norway. All stocks on the OBX list can be traded with options and futures. The companies on the OBX list are rotated t ...
.


History

The CAC 40 takes its name from the Paris Bourse's early automation system
Cotation Assistée en Continu Cotation Assistée en Continu (CAC) was an electronic trading system used at the Paris Bourse, the French stock exchange, in the 1980s and 1990s. It was introduced in 1986 for trading less liquid equities, and in 1989 it was operational for all l ...
(''Continuous Assisted Quotation''). Its base value of 1,000 was set on 31 December 1987, equivalent to a market capitalisation of 370,437,433,957.70
French franc The franc (, ; sign: F or Fr), also commonly distinguished as the (FF), was a currency of France. Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amount of money. It wa ...
s. On 1 December 2003, the index's weighting system switched from being dependent on total market capitalisation to
free float In the context of stock markets, the public float or free float represents the portion of shares of a corporation that are in the hands of public investors as opposed to locked-in shares held by promoters, company officers, controlling-interest in ...
market cap only, in line with other leading indices.


Rules


Selection

The CAC 40 index composition is reviewed quarterly by an independent Index Steering Committee (french: Conseil Scientifique). If any changes are made, they are effected a minimum of two weeks after the review meeting. At each review date, the companies listed on Euronext Paris are ranked according to
free float In the context of stock markets, the public float or free float represents the portion of shares of a corporation that are in the hands of public investors as opposed to locked-in shares held by promoters, company officers, controlling-interest in ...
market capitalisation and share turnover over the prior 12 months. From the top 100 companies in this ranking, forty are chosen to enter the CAC 40 such that it is "a relevant benchmark for portfolio management" and "a suitable underlying asset for derivatives products". If a company has more than one class of shares traded on the exchange, only the most actively traded of these will be accepted into the index (generally this will be the ordinary share).


Weighting

The CAC 40 is a
capitalization-weighted index A capitalization-weighted (or cap-weighted) index, also called a market-value-weighted index is a stock market index whose components are weighted according to the total market value of their outstanding shares. Every day an individual stock's ...
. The number of shares issued (used to calculate the market cap and hence the index weight) of a company is reviewed quarterly, on the third Friday of March, June, September and December. Since December 2003, the index weightings of companies in the index have been capped at 15% at each quarterly index review, but these range freely with
share price A share price is the price of a single share of a number of saleable equity shares of a company. In layman's terms, the stock price is the highest amount someone is willing to pay for the stock, or the lowest amount that it can be bought for. B ...
subsequently. A capping factor is used to limit the weights to 15% (if necessary), and is reviewed annually by the Index Steering Committee on the third Friday of September.


Calculation

The index value I of the CAC 40 index is calculated using the following formula: I_t = 1000\times\frac with ''t'' the day of calculation; ''N'' the number of constituent shares in the index (usually 40); ''Qi,t'' the number of shares of company ''i'' on day ''t''; ''Fi,t'' the free float factor of share ''i''; ''fi,t'' the capping factor of share ''i'' (exactly 1 for all companies not subject to the 15% cap); ''Ci,t'' the price of share ''i'' on day ''t''; ''Qi,0'' the number of shares of company ''i'' on the index base date; ''Ci,0'' the price of equity ''i'' on the index base date; and ''Kt'' the "adjustment coefficient for base capitalization" on day ''t'' (reflecting the switch from the French franc to the Euro in 1999).


Contract Specifications

The CAC 40 index is traded as a future on the Euronext Equities & Index Derivatives (EUREID) exchange under the ticker symbol PIL.


Holders

Although the CAC 40 is almost exclusively composed of French-domiciled companies, about 45% of its listed shares are owned by foreign investors, more than any other main European index. German, Japanese, American and British investors are amongst the most significant holders of CAC 40 shares. This large percentage is due to the fact that CAC 40 companies are more international, or multinational, than any other European market. CAC 40 companies conduct over two-thirds of their business and employ over two-thirds of their workforce outside France.


Record values


Annual Returns

The following table shows the annual development of the CAC 40, which was calculated back to 1969.


Composition

The index consists of the following companies as of the quarterly update effective November 2021. The most recent composition can be found o
euronext website


See also

* :CAC 40 *
CAC Next 20 The CAC Next 20 is an index of security prices used with the Euronext Paris or Euronext Amsterdam. It gathers the 20 companies whose market capitalizations are ranked after those of the 40 companies who compose the CAC 40. These 20 are possible ca ...
*
List of French companies A ''list'' is any set of items in a row. List or lists may also refer to: People * List (surname) Organizations * List College, an undergraduate division of the Jewish Theological Seminary of America * SC Germania List, German rugby union ...
* List of largest French companies


References


External links


Official Euronext page for CAC 40 IndexFCHI: Summary for CAC 40 INDEX - Yahoo! FinanceBloomberg page for CAC:IND
{{DEFAULTSORT:Cac 40 French stock market indices Lists of companies of France