Curious about the driving force behind the French stock market?Meet the CAC 40, an index all about keeping tabs on the top 40 stocks in the country. It’s like a highlight reel of the big players from the Euronext Paris exchange, the movers and shakers of the French financial scene.
Here’s a brief overview of the index and its history:
Think of the France CAC 40 Index as a star guide in the French stock market galaxy. It kicked off in December 1987 with a score of 1,000 and has grown since.
The CAC 40 is like a VIP club for French businesses on the Euronext Paris stock exchange. Getting in isn’t easy – only the 40 biggest and most active companies make the cut. They get chosen based on their overall worth, how often their stocks are traded, their financial size, and how easily their stocks can be bought or sold.
What’s even cooler is that the CAC 40 isn’t just famous in France. It’s a superstar in Europe, drawing lots of attention from foreign investors.
History of the France CAC 40 Index
Way back in 1987, on 31 December, the CAC 40 started off with a score of 1,000. The index’s starting value reflected the total value of the companies in the index, which was a huge 370,437,433,957.70 French francs back then.
Things got really exciting during the dot-com bubble in 2000. The CAC 40 hit its highest point ever, a whopping 6922.33 points.
Shortly after, in September 2000, the CAC 40 became part of something even bigger. The Paris stock market joined up with exchanges in Amsterdam and Brussels to make a European exchange called Euronext.
As time went on, the CAC 40 changed its methodology. Before, it depended on total market capitalisation. But in December 2003, it changed lanes to the free float methodology.
3 Interesting Facts About France CAC 40 Index
#1: Unlike some indices, the CAC 40 doesn’t count dividends in its measurements. It’s like focusing on the action of the game rather than the prizes.
#2: The index is like a clock that never stops ticking. It updates every 15 seconds during the working day, from 9:00 a.m. to 5:30 p.m. It’s always keeping us in the loop.
#3: While the CAC 40 is mostly made up of French companies, nearly 45% of its shares are owned by investors outside of France. It’s like a global stock market party with German, Japanese, American, and British guests holding the VIP passes.
The France CAC 40 Index is an accurate reflection of French economic might and global investment allure. With a rich history, diverse membership, and international appeal, it remains a captivating gauge of market vitality and a key player in the exciting world of stock trading.
