The FTSE 100 Index: A Comprehensive Guide
Understanding the FTSE 100
The FTSE 100 Index, also known as the Footsie, is a stock market index that comprises the 100 most capitalized companies listed on the London Stock Exchange (LSE).
Quarterly Review Process
The constituents of the FTSE 100 are reviewed every quarter, typically in March, June, September, and December.
At each review, the companies in the index are ranked based on their market capitalization.
The bottom 10 companies are removed from the index, while the top 10 companies from the FTSE 250 Index are added.
FTSE 100 Performance
The FTSE 100 Index is a widely followed indicator of the performance of the UK stock market.
It is also used as a benchmark for investment performance and is a popular choice for index trackers and exchange-traded funds (ETFs).
The FTSE 100 has a long history dating back to 1984 and has experienced significant fluctuations over the years.
Key Facts
- The FTSE 100 is the most widely followed stock market index in the UK.
- It comprises the 100 most capitalized companies listed on the London Stock Exchange.
- The index is reviewed quarterly, with companies entering and exiting based on market capitalization.
- The FTSE 100 is a benchmark for investment performance and is used by index trackers and ETFs.
Comments