**CAC 40: Composition and Review**
**Introduction**
The CAC 40 is a benchmark index of the 40 most valuable companies listed on the Euronext Paris stock exchange. It is a widely followed indicator of the performance of the French stock market.
**Composition**
The composition of the CAC 40 is reviewed quarterly by the Euronext Scientific Council. Companies are added or removed based on their market capitalization, liquidity, and sector representation. The current composition of the CAC 40 includes companies from a variety of industries, including energy, finance, healthcare, and telecommunications.
**Review Process**
The review process for the CAC 40 is based on a set of predefined criteria. To be eligible for inclusion, companies must: * Have a market capitalization of at least €10 billion * Be listed on the Euronext Paris stock exchange for at least 12 months * Have a sufficient level of liquidity * Represent a significant sector of the French economy Companies that meet these criteria are ranked by their market capitalization. The top 40 companies are then selected to be part of the CAC 40.
**Impact**
Changes to the composition of the CAC 40 can have a significant impact on the index and the broader market. The inclusion of a new company can boost its share price, while the removal of a company can lead to a sell-off. The composition of the CAC 40 is also used as a benchmark for a variety of financial products, such as index funds and ETFs.
**Conclusion**
The CAC 40 is a dynamic and closely followed index that provides insights into the performance of the French stock market. The composition of the index is reviewed quarterly to ensure that it accurately reflects the changing economic landscape.
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