CAC 40

The CAC 40 index (Continuous Assisted Quotation) is the main stock market index of the Paris Stock Exchange. Created in 1987, it represents the performance of the 40 largest listed companies in France, selected based on market capitalization and trading volume. These companies cover various sectors of the economy, such as finance, industry, technology, and consumer goods.

The CAC 40 is often used as an indicator of the economic health and performance of the French stock market. It is calculated and published in real time by Euronext Paris.

How is the CAC 40 calculated?

The CAC 40 is a stock market index weighted by the market capitalization of the 40 largest companies listed on the Paris Stock Exchange. Here is how it is calculated:

Selection of companies: The 40 most representative companies of the French market are selected based on their market capitalization and trading volume.

Weighting: Each company is assigned a weight in the index based on its free-float market capitalization, that is, the portion of shares available to the public. Companies with larger capitalizations therefore have a greater weight in the index.

Daily adjustment: The index is adjusted daily to reflect changes in the stock prices of the constituent companies.

Dividends: Dividends paid by the companies are not included in the calculation of the index, except for the CAC 40 GR (Gross Return) index, which reinvests dividends.

The calculation of the CAC 40 is performed in real time by Euronext Paris, allowing the performance of the largest French companies to be tracked throughout the trading day.