The stock market is a simple tool to our economy of what is valuable and what is decreasing in value. There is not just one stock market, but also multiple in various places, most notably in New York’s Wall Street. Chicago, Hong Kong, and Rome also have their stock market, as well as in London. The London Stock Exchange is the world’s oldest stock exchange, going back 300 years and various indexes. All of the so-called “closing figures of the day” comes from the end result of daily shares of a certain company stock. One of these market forums to buy and sell stock is the FTSE 100 Index.
Who They Are
The FTSE is the acronym for Financial Times Stock Exchange, named after the economic newspaper located within the London Stock Exchange. One-hundredcompanies, among the biggest in the entire stock exchange, are listed on the FTSE100, showcasing their special recognition, value, and importance in the economy for Europe and globally. It is “the market” and everything else is a tier lower, giving a summary on how the stock market is doing in the country.
What It Does
It calculates the day-by-day stock value of the top 100 companies listed, measuring by the minute as everything changes based on the news of the company and of the political changes taking place. It is simple: if numbers are up, people are buying and prices are rising; if numbers go down, people are selling and so are the prices. However, not all stocks are equally important or as worthy. A stock’s share price is based on market capitalization, where bigger companies will make or break more likely than smaller companies. The most influential companies listed and affects the economy the most include Shell, Aviva, Lloyds, and HSBC.
Do FTSE 100 Companies Change
The performance of a company determines where they rank and if they qualify for the FTSE 100.
Economic experts meet quarterly to discuss the economic impact of a company and where they stand in the FTSE 100. Companies are eligible based on market capitalization, calculated by multiplying number of shares by the price per share. As of September of this year, the market capitalization is at £1.899 trillion. Among the most notable companies listed, as of September 2017, include Coca-Cola, Vodafone, Morrisons, Rolls-Royce, and Unilever. Former companies of the FTSCE 100 include British Airways, O2, Royal Mail, Invesco, and William Hill.
FTSE 100 companies represent more than eighty percent of the entire LSE market capitalization as internationalcompanies. They are the powerhouse businesses that connect all continents and all major countries in every important sector from banks to insurance to travel. It is something that the public can get involved in with buying and selling stocks that fluctuate every working day and make up a major little piece of the global economy. The FTSE 100 is a major important piece of our economic standing.