The FRA40 is a benchmark index containing 40 of the biggest companies on the Euronext Paris exchange. It’s commonly referred to as the French 40. Most of the companies included are international, representing 35 different sectors.
The sectors with the largest effect on the index are banking at 10% and oil equipment at 9%. Because the index consists of many international companies, foreign investors from countries like America, Britain, Germany, and Japan own nearly half of all shares.
CAC40 stands for Cotation Assistée en Continu, which is French for ‘continuous assisted trading’. The CAC40 is the official name of the FRA40.