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. Personal Finance

    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.
  2. Professionals

    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.
  3. Personal Finance

    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.
  4. Markets

    France's GDP Sputters at the End of 2015

    According to the statistical agency INSEE, the French economy grew at a slower pace on account of declining consumer spending, though it was helped by an improvement in business investments.
  5. Investing

    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.
  6. Personal Finance

    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. Markets

    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. Insights

    Google's Paris HQ Raided in Probe (GOOGL)

    Google's Paris headquarters was raided by finance officials as part of an ongoing tax inquiry.
  9. Retirement

    Is Retiring in France Safe Today?

    After a series of deadly terrorist incidents, some may be asking themselves this question.
  10. ETFs & Mutual Funds

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
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. What is the difference between the QQQ ETF and other indexes?

    Find out more about the PowerShares QQQ Trust, the index the QQQ tracks, and the difference between QQQ, the SPY and Nasdaq ... Read Answer >>
  5. 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 >>
  6. What's the difference between a capital market and the stock market?

    Learn about the differences between stock market and capital market. Identify several important stock markets and understand ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center