Often we hear about many indicators trading in the stock market, always reluctant to Msamana such names as Nasdaq, Dow Jones, CAC 40 and other .... In this article we will cover what is the CAC 40 index in detail.
So what is the CAC 40 index? It is one of the most actively traded on the Euronext Paris Stock Exchange, formerly known indicators. Activity index reflects the 40 largest French companies such as Renault, Michelin, L'Oreal and other ... indicator known in French in the name Cotation Assistée en Continu, is the most prominent of the indicators used as a measure of French investment in hedge funds
In addition to that it gives a general idea about the health of the French economy and the Paris Stock Exchange, the Dow Jones Just as reflecting the health of the US economy Alcak used to measure the overall trend of the French market. It is one of the national key indicators for the European stock exchange group along with other indicators such as Brussels indicator known BEl20, known as the Lisbon PSI20 index and other indicators ...
The shares issued by the companies calculated on a quarterly basis, all day Friday of the third week following months of March, June, September, and December. Review companies are components of the index on a quarterly basis by an independent steering committee. If there has been any change, the amendment after at least two weeks to go in the resolution.
In each review date, it is classified as listed on the Euronext Stock Exchange in accordance with the free assessment of the market value and the volume of stock trading in the previous twelve months. Of the largest 100 companies in this category are selected forty companies to form the index. If the company has more than one type of shares traded on the stock exchange, the selection of the most traded stocks that are generally ordinary shares.
Although the only component of the index of companies resident in France, the percentage of foreign owners in which about 45% of the total shares of the index this ratio exceeds any other European index. So as to achieve great popularity index when Japanese investors, the Germans, the English, and the owners of American citizenship. It is likely to be due to the fact that Alcak included in either international or multinational companies, more than any other European index.
There are many things that affect the index because of the globalization of his companies and comprehensiveness so the index tends to be influenced by a number of foreign and economic factors. Any important economic statement a European or French can lead to fluctuation of the index. This is in addition to the significant impact that afford a private US data on the index if an international impact, such as changing interest rates and unemployment rates in the US economy. Let's not also forget the impact of natural disasters and political unrest not only on the index, but the French and the European economy as a whole.
So the next time you want to trading the index, please follow the market news to see trading conditions, and this applies to all indicators and not only on the CAC 40.
