Overview of France 40
France 40 or the CAC 40 Index is an index of the stocks of the 40 largest French companies. In terms of market capitalisation, they are selected from the top companies listed on the NYSE Euronext. The France 40 Index is a market value weighted index, composed of the 40 highest levels among the 100 highest market caps on the Paris Bourse. The CAC 40 takes its name from the early automation system used by the Paris Bourse. On 31 December 1987 its base value of 1,000 was set, equal to a market capitalisation of 370,437,433,957.70.
History of France 40
The acronym “CAC” stood for “Compagnie des Agents de Change”. This is the term for the company which originally controlled the Paris Stock Exchange. According to records, stock dealing by “agents de changement” or stock brokers existed in France since at least the 16th century. During Napoleon’s administration in 1801, with the opening of the Paris Stock Exchange, a “Compagnie of Agents de Change” was created, and a company of 71 officially recognised brokers was assigned to carry out trading activities. The Compagnie des Agents de Change was dissolved, with the Stock Market Reform Act of January 1988. Although a private partnership the SociÃ©tÃ© des Bourses FranÃ§aises was established in its place. The institutional term “CAC” persisted, and the CAC 40 index was formally introduced on June 15, 1988 with a base value of 1,000 as of December 31, 1987. Its arrival in France coincided with the advent of electronic trading in the region, and the acronym “CAC” then came to stand for “Cotation AssistÃ©e en Continu,” or Continuous Assisted Quotation (stock price). In September 2000 the index hit an all-time high of 6922.33, and a lifetime low of 893.82 in January 1988.
Market capitalization of France 40
Holders of France 40
While the CAC 40 is almost comprised of French-domiciled firms, foreign investors own about 45% of its listed securities. This is more than any other main European index. French, Japanese, US and UK investors are among the biggest holders of CAC 40 stock. This huge percentage is due to the more foreign, or global, cac 40 firms than any other european market. Over two-thirds of CAC 40 companies operate their business and use more than two-thirds of their workforce outside France.