The Financial Times 100 Index, or FTSE,
is the most widely used benchmark for the performance of equities traded on the
London Stock Exchange. Started in January 1984 with an initial value of 1000,
the index contains the 100 largest companies traded on the London Stock Exchange
(based on market capitalization). These stocks represent about 80% of the value
of all issues traded on the exchange. Because it is weighted by market cap, the
index's largest component stocks have the greatest influence on the FTSE's
value. The index is quite unusual in that it re-weights its component stocks
daily to represent the actual state of the market. Meanwhile, the index is fully
rebalanced (additions and subtractions) on a quarterly basis.
Additional Information:
FTSE Website
Bloomberg FTSE Page
