CAC 40: France's Benchmark Stock Index
Introduction
The CAC 40 (Cotation Assistée en Continu) is the leading stock market index of the Paris Stock Exchange (Euronext Paris). It is a free-float, market-capitalization-weighted index that measures the performance of the 40 largest publicly traded companies in France.
Composition and Calculation
The CAC 40 includes companies from a diverse range of industries, including finance, energy, pharmaceuticals, and consumer goods. The index is calculated in real-time based on the stock prices of its constituent companies. The weights of each company in the index are determined by its market capitalization, with the largest companies having the greatest influence.
Significance
The CAC 40 is a widely recognized benchmark for French and European equity markets. It provides investors with a comprehensive view of the overall performance of the French stock market and the health of the French economy. The index is often used as a reference point for fund managers and investors looking to allocate capital in France.
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