The CAC-40 Index is the benchmark
tracking index for the Paris Bourse. Started in December of 1987 with a value of
1000, the index is comprised of the 40 largest and most liquid stocks trading on
the exchange. The CAC-40 is a 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. This prevents a large company that only issues a
small amount of its shares from having a disproportionate amount of influence on
the index�s value. Similar to how the S&P 500 is a subset of the S&P
3000, the CAC-40 is a subset of the larger SBF (Societe des Bourse Francais)
250.
Additional Information:
Euronext Exchange -- CAC-40 Information
Bloomberg CAC-40 Page
