![](https://cdn-resources.ofm.global/sites/china/files/italy.jpg)
The Italian 40 index is a listing of the 40 most-traded stocks on the Borsa Italiana, the Italian national stock exchange. It is also now referred to as the FTSE MIB (Milano Italia Borsa), but prior to 2009 it was known as the S&P/MIB.
From its inception in 2004 after the S&P/MIB superseded the MIB-30, the index was managed by Standard & Poor. However, this responsibility was transferred to FTSE Group in June 2009 and subsequently changed its name to that which it is known by today.
The move took place as FTSE Group is 50 percent owned by the Borsa Italiana's parent company the London Stock Exchange Group.
Listing for the index is based upon the popularity of stock classes on the exchange, with entry into the FTSE MIB reliant on a number of base principles. These are that, primarily, companies should be financially viable and at least 30 per cent of the firm's shares should be floated.
Furthermore, all business shareholders of more than five per cent for all entrants to the index are taken into consideration on the IWF.
The Italian 40 is open to any stock on the Italian stock exchange, being a representation of the 40 most fluid stocks and the industries they represent.
Companies presently listed on the index include tire manufacturer Pirelli, iron and steel business Tenaris, oil equipment and services provider Saipem, alternative electricity developer Enel Green Power, as well as a number of Italy's top banks, including Banco Popolare di Milano, Banca Monte dei Paschi di Diena and Intesa Sanpaolo.
Investors are able to use the index to determine who the movers and shakers are within the MIB, they can then put this knowledge to good use to predict possible movements in share prices.