CAC 40 definition
The CAC 40 is a standard French stock market index. The CAC 40 index comprises of the 40 most significant values among the 100 highest market caps on the Paris Bourse which has now been changed to Euronext Paris. The CAC 40 index was created on 31 December 1987 with a base value of 1000.
What does CAC stand for?
The name CAC 40 comes from the Paris Bourse’s early automation system Cotation Assistée en Continu (Continuous Assisted Quotation).
How CAC 40 is calculated?
The French CAC 40, the Euronext Paris benchmark index, is changing its method of calculating companies’ weighting in the index to base it on free float rather than on market capitalization. The CAC 40 index is calculated once per 30 seconds from 9:00 until 17:30 (CET).
The CAC 40 is a free float-weighted index, meaning that the weightings of each of the index’s components are determined by the value of shares outstanding to the public.