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.
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.
Central Bank: European Central Bank and Banque de France
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
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.
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.
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.
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.
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.
The chart herein suggests that investors in the French
market should welcome the Socialists with open arms.
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
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.
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.
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
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
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.