FTSE 100
The FTSE 100 is an index of the share prices of the UK's 100 largest quoted companies (by market capitalisation) listed on the London Stock Exchange. It is seen as a barometer of the success of the British economy and is the leading share index in Europe.
The FTSE Group is responsible for the daily calculation of over 60,000 indices. The best known indices are the FTSE UK Series which includes the FTSE 100. The index was started in 1984 and is updated throughout the trading day in real time. It is maintained by the FTSE Group, which originated as a joint venture between the Financial Times and the London Stock Exchange.
Stock Exchange indices are designed to give investors an idea of the general movement of the stock markets and its overall value. By comparing the performance of their own portfolios with the performance of one of the Stock Exchange indices, investors can see how well they have done from a comparative point of view. In particular they can see whether they would have been better off putting their money in an index tracker fund.
The companies that make up the FTSE 100 are determined on a quarterly basis. The largest companies in the FTSE 250 index are promoted if their market capitalisation would place them in the Top 90 firms of the FTSE 100. Currently, it is estimated that the market capitalisation threshold for a company to gain entry to the FTSE 100 is around two billion pounds.
Companies found in the FTSE 100 are usually Public Limited Companies (PLCs). Currently, the five largest companies listed on the FTSE 100 are BP, HSBC Holding, the Royal Bank of Scotland Group, Vodafone Group and GlaxoSmithKline. The remaining 95 companies span a range of sectors including finance, FMCG, Telecomms, Media and Manufacturing. Notable companies found on the FTSE 100 include Abbey National, British Airways, British Sky Broadcasting, Cadbury Schweppes, Reuters Group, Scottish & Newcastle, Tesco and Unilever.
Contact details
FTSE
15th Floor, St Alphage House
2 Fore Street
London EC2Y 5DA
Tel: 020 7448 1800
Fax: 020 7448 1804
www.ftse.com