CAC 40

DEFINITION of 'CAC 40'

The French stock market index that tracks the 40 largest French stocks based on market capitalization on the Paris Bourse (stock exchange).

BREAKING DOWN 'CAC 40'

The CAC 40 is used as a benchmark index for funds investing in the French stock market and also gives a general idea of the direction of the Paris Bourse. The CAC 40 is similar to the Dow Jones Industrial Average in that it is the most commonly used index that represents the overall level and direction of the market in France. At the time of writing (Aug 2005), the CAC 40 included such companies as Renault, Michelin, L'Oreal and Vivendi Universal.

RELATED TERMS
  1. Bourse

    A market organized for the purpose of buying and selling securities, ...
  2. Paris Stock Exchange (PAR) .PA

    Now known as the NYSE Euronext (NYX), the Paris Stock Exchange ...
  3. Strategic Investment Fund

    The Strategic Investment Fund is a government-owned sovereign ...
  4. Edouard Michelin

    A former president and CEO of French tire manufacturer and map ...
  5. World Federation Of Stock Exchanges

    An international standards organization based in Paris that was ...
  6. French Franc - F

    A currency used in France, prior to the introduction of the euro. ...
Related Articles
  1. Mutual Funds & ETFs

    What You Should Know About CAC 40 ETFs

    Interested in investing in CAC 40 via ETFs? Here's a look at some popular funds.
  2. Credit & Loans

    What Does It Cost to Study Abroad in Paris?

    Housing will be your biggest budget challenge as a student in Paris, but the city offers lots of ways for students to save money, too.
  3. Personal Finance

    How Much Does It Cost to Study Abroad in France?

    Study abroad can deliver a big return on your investment. Here are some costs to consider if you're thinking of studying in France.
  4. Savings

    8 Tips on Saving Money as a Student in Paris

    A strong dollar and French government policies designed to help students make it easier to survive on a tight budget.
  5. Mutual Funds & ETFs

    Index Investing: Other Indexes

    We've covered most of the big U.S. indexes, but we've barely scratched the surface of all the other indexes in the world. There are literally thousands of indexes tracking nearly any market. ...
  6. Budgeting

    How to Travel to Paris on a Budget

    By following a few simple tips you can enjoy a Paris vacation without hurting your monthly budget.
  7. Economics

    What is the Paris Club?

    The Paris Club is an informal group of nations that meet to find solutions for problems facing debtor nations.
  8. Investing Basics

    What is the Stock Market?

    A stock market is where shares in corporations are issued and traded. Stock markets are key components of a free market economy.
  9. Professionals

    Average Market Returns

    We look at the major indexes and their average yearly returns.
  10. Retirement

    Is Retiring in France Safe Today?

    After a series of deadly terrorist incidents, some may be asking themselves this question.
RELATED FAQS
  1. What are the most common market indicators to follow the European stock market and ...

    See which market indicators and major market indexes are used most frequently by traders and analysts to measure the European ... Read Answer >>
  2. How do indexes determine which stocks are removed or added to them?

    Stock indexes are formed based on the kinds of stocks or financial securities they want to track. For example, the Standard ... Read Answer >>
  3. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ... Read Answer >>
  4. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions. Read Answer >>
  5. How can a company hedge with currency swaps?

    Read a brief overview of how currency swap exchanges function, why a swap bank is necessary, and how the parties involved ... Read Answer >>
  6. Is it possible to invest in an index?

    First, let's review the definition of an index. An index is essentially an imaginary portfolio of securities representing ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center