CAC 40

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The CAC 40, which takes its name from Paris Bourse's early automation system Cotation Assistée en Continu (Continuous Assisted Quotation), is a French stock market index, a benchmark index for Euronext Paris. The index represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Paris Bourse. Its base value of 1,000 was set on 31 December 1987. As of 1 December 2003, the index has become a free float weighted index.

Interestingly, although CAC 40 is composed of "French" companies, about 45% of their shares are owned by foreign investors. German investors share the largest part of it at 21%. Japanese, American and British investors are also important owners - this percentage is unusually high.The explanation can be in the fact that CAC 40 companies, or multinational, are more international than any other European market. Many of these companies conduct business outside of France (63% of the CAC 40 companies' employees are outside of France).