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Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
Stock Market in France
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Stock Market in France

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  • 1. Vineet Bhansali Roll No.: 783
  • 2. INTRODUCTION  A stock market or exchange is the center of a network of transactions where securities’ buyers meet sellers at a certain price.  The market in which shares are issued and traded either through exchanges or over-the-counter markets.  Also known as the equity market, it is one of the most vital areas of a market economy as it provides companies with access to capital and investors with a slice of ownership in the company and the potential of gains based on the company's future performance.
  • 3.  This market can be split into two main sections: the primary and secondary market. The primary market is where new issues are first offered, with any subsequent trading going on in the secondary market.  A stock market or exchange is not necessary a physical facility and with the advancement of information technology it is rare to find those traders that exchange their stocks in the floor of a major stock exchange.
  • 4. RELEVANT FACTS  Central Bank: European Central Bank and Banque de France  Stock Exchanges: Bourse de Paris/Euronext: Upon full completion of Euronext's planned integration process, Euronext will be the first fully integrated, cross-border, European market for equities, bonds, derivatives and commodities. Euronext was created by the merger of the exchanges in Amsterdam, Brussels and Paris in response to growing demand from the market, a political environment favourable to further consolidation in the European capital market, and a desire to capitalise on greater liquidity and lower costs resulting from the introduction of the euro. Le Nouveau Marche  Quotes and Data for Indices and its constituents: CAC 40 · ITCAC 50 · CAC 40 Gainers · CAC 40 Losers · CAC 40 Most actives · SBF 80 · SBF 120 · SBF 250 · Eurostoxx 50
  • 5. BRIEF HISTORY  Share transactions in France were historically centred on the Bourse de Paris (Paris Stock Exchange), a national system that in the late 20th century incorporated much smaller exchanges at Lyon, Bordeaux, Lille, Marseille, Nancy, and Nantes.  Share dealings and stock market activity increased greatly beginning in the early 1980s, corresponding with a period of deregulation and modernization: official brokers lost their monopoly on conducting share transactions; a second market opened in 1983 to encourage the quotation of medium-size firms; and in 1996 the “new market” was launched to help finance young, dynamic companies in search of venture capital.  Also in 1996 the Bourse was restructured, reinforcing the powers of its controlling body, Commission des Opérations de Bourse.  In 2000 the Bourse merged with the Amsterdam and Brussels stock exchanges to form the Euronext equities market, which in 2006 merged with the New York Stock Exchange.
  • 6. THE PARIS STOCK EXCHANGE  Currently known as NYX or the NYSE Euronext, which was formed by the merging of Euronext N.V. and NYSE Group. Incorporation on 4th April in 2007. Numerous eminent companies of the world are listed under NYSE Euronext or the Paris Stock Exchange.  NYSE Euronext or Paris Stock Exchange handles the functioning of the most liquid and greatest exchange group of the world. It offers a diverse range of financial services and products that are extremely helpful for its clients. The stockbrokers of Paris Stock Exchange are very professional and provide efficient services.  The Paris Stock Exchange regulates the functioning of the MATIF futures exchange as well as the MONEP. Some of the major functions of the Paris Stock Exchange include controlling the index futures, equities and much more. There are certain products and systems that are used and followed by the NYX. For example, for conducting electronic trading of certain products, the NSC system is mainly used, while LCH.Clearnet is used for clearing all transactions.
  • 7.  Paris Stock Exchange has a well-defined equity market, which is divided into 4 sections.  The first section is the Premier Marche, which includes big foreign and French companies as well as most of the bond issues. Earlier it was known as the Official List. In the second section known as the Second Marche, moderate-sizes firms are listed. Nouveau Marche, the third section of Sock Exchange of Paris lists new companies that are associated with the equity growth market of Europe and require capital. The last section is the Marche Libre, which controls security transactions that are left out by the other 3 sections.
  • 8.  The CAC 40 is a benchmark French stock market index.  The index represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Paris Bourse.  It is one of the main national indices of the pan- European stock exchange group Euronext.  Now known as the NYSE Euronext (NYX), the Paris Stock Exchange trades both equities and derivatives and posts the CAC 40 Index. This index is made up of French companies, although nearly half of these are owned by foreign entities. NYX seeks to offer the most modern and advanced trading platform and services available to traders.
  • 9.  The CAC 40 index was launched on 31 December 1987 with base value of 1000. The index's weighting system was changed from total market capitalisation to free float market cap only on 1st December 2003.  A quarterly review of the CAC 40 index composition is done by an independent Index Steering Committee. The changes made by the review committee get effected after a minimum of two weeks. At each review date, the companies are then ranked according to free float market capitalisation and share turnover over the prior 12 months of which 40 companies are selected from the top 100 companies in this ranking.
  • 10. The chart herein suggests that investors in the French market should welcome the Socialists with open arms.
  • 11. HOLDERS OF CAC 40  Although the CAC 40 is almost exclusively composed of French-domiciled companies, about 45% of its listed shares are owned by foreign investors, more than any other main European index.  German, Japanese, American and British investors are amongst the most significant holders of CAC 40 shares.  This large percentage is due to the fact that CAC 40 companies are more international, or multinational, than any other European market. CAC 40 companies conduct over two-thirds of their business and employ over two-thirds of their workforce outside France.
  • 12. MARKET OBSERVATIONS  Stock market success may traditionally be associated with pro-free market rather than socialist governments but, according to Societe Generale, one key reason why French shares are set to push higher is France's current left-of-center regime.  Meanwhile, France posted zero growth last year, and pessimism about its economy has risen since Fitch Ratings became the third major ratings agency to strip it of its AAA rating, in July.  The French CAC 40 had outperformed Germany's benchmark DAX 30 index over the past 18 months.  Today ORÈGE is France's first and only 100% cleantech company to list in Paris.
  • 13.  Investor attention is strongly correlated to trading volume and is a significant determinant of the stock market illiquidity and volatility. Most importantly, this evidence is maintained even after controlling for the financial crisis effect.  France, which fell five positions in this year's survey, thrives seemingly in spite of the roadblocks it puts up to business.  Highly-ranked in bonds and forex, and the world leader in derivatives trading, France also enjoys excellent management education and top-notch communications infrastructure.  In addition, its banking system has fared better than many during the financial crisis.  The downsides? An inhospitable business climate marred by regulation, high taxation, and public debt; a high degree of centralization; and impediments to starting businesses.
  • 14. THANK YOU

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