Financial Times Stock Exchange (FTSE)

Different countries around the world have different stock markets with different rules, companies, governing bodies and regulatory restrictions and rules.

The London Stock Exchange

The London Stock Exchange is the UK’s stock exchange with headquarters, as one would guess, in London, centrally located near St. Paul’s Cathedral. As of 2919, the market capitalisation is worth nearly $5 trillion. This stock exchange is one of the oldest in the world, dating as far back as 1571. It is one of the main players in the London Stock Exchange Group.

FTSE 100

In the UK, the London Stock Exchange is partly made up of 100 companies, and a collection of these companies listed on the London Stock Exchange is called the Financial Times Stock Exchange, more commonly and locally known by its abbreviation, FTSE, but pronounced ‘footsie’. The London Stock Exchange group is the main governing and regulatory body for the stock exchange; hence, the FTSE group maintains and handles the FTSE index.

The FTSE is made up of top 100 companies based on qualifying criteria, which is their market value. The market value is arrived at by multiplying the individual share price of the company by the total number of issued shares on the stock exchange market. Because of the way companies qualify and their value calculated, most of the 100 companies that make up this index are actually internationally focused and multinational corporations. Thanks to the international stature of these companies, the real economic situation and status of the United Kingdom is not accurately or effectively captured by the index movement or stock exchange fluctuations. More often, professionals and economists look to the FTSE 250, which is, as you may have guessed, a collection of the Uk’s top 250 companies with a lower proportion of international and internationally focused companies.