Overview of the CAC 40 Stock Market Index

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The CAC 40 (CAC quarante) is a French stock market index. It is a capitalization-weighted index that measures the performance of the 40 largest, publicly traded companies on the Euronext Paris France’s securities market.

The CAC is one of the main national indices of the stock exchange group Euronext alongside Brussels’ BEL20, Lisbon’s PSI-20 and Amsterdam’s AEX.
As France is one of Europe’s leading economies, the CAC is a strong indicator of the economic performance and health of Europe as a whole.

oat method so only shares held in public hands are included. From the top 100 companies from this ranking, forty are chosen to enter the CAC so that it is a relevant benchmark of French equities and portfolio management.

ned unchanged since December 2011.

-> the CAC was set at 1,000 on 31st December 1987. This base value of 1,000 was the equivalent of a total market capitalization of 370,437,433,957.70

e CAC’s all-time high was reached during the peak of the dot-com bubble in September 2000 when it hit 6,922 points.

< most indices, we saw the CAC fall to its lowest level (2,500) in 6 years on the back of the credit crunch. The CAC has since bounced back and is currently trading around the 4,200 level.

elance of the CAC < el When Trading the CAC <
  • The CAC moves in increments of 0.50.
  • The margin requirement for trading the CAC is usually about 2% (i.e. 50 to 1 leverage) with most brokers.
  • The minimum trade size is 1 index.
  • The currency of the CAC is the euro.
  • say we want to BUY 1 index of the CAC and it is currently priced at 4,200 and we have a Euro denominated trading account: