Financial Times Stock Exchange Index
Financial Times Stock Exchange Index is a number that represents overall gains and losses of stocks traded on the London stock market. The number is commonly called the FTSE 100, often pronounced to sound like “footsie.” An index calculation company called FTSE International Limited determines and reports the number. The Financial Times—an international business publisher based in London—and the London Stock Exchange own FTSE International Limited. The Faculty and Institute of Actuaries, an Edinburgh- and London-based organization of financial experts, works with the group.
The FTSE 100 tracks the stock prices of the largest 100 companies traded on the London Stock Exchange. A specially designated committee determines the 100 largest stocks, based on market capitalization, or estimated value. The index includes only companies that are based in the United Kingdom.
The FTSE 100 is just one of several indexes reported by FTSE International Limited. Other indexes track different groups of stocks. The FTSE All-Share Index tracks over 800 leading companies on the London Stock Exchange. The FTSE 250 Index tracks the 250 largest companies just below those included in the FTSE 100. The FTSE 100 and the FTSE 250 combine to form the FTSE 350 Index. The FTSE SmallCap Index tracks the companies within the FTSE All-Share Index that are not large enough to be included in the FTSE 350. The smallest companies traded in the United Kingdom make up the FTSE Fledgling Index.
Other FTSE indexes represent stock values for companies throughout Europe and the world. The FTSE Eurotop 100 Index tracks the 100 most heavily traded stocks throughout Europe. The FTSE All-World Index tracks stock information in 49 countries on the global market.