FTSE 100

The Financial Times Stock Exchange 100 Index, commonly known as the FTSE 100, is a stock market index that represents the performance of the 100 largest publicly traded companies in the United Kingdom. It is calculated and published by FTSE Russell, a subsidiary of the London Stock Exchange Group.

The FTSE 100 is a market-capitalization-weighted index, which means that the companies included in the index are weighted based on their market value. The larger the market capitalization of a company, the higher its weighting in the index. This means that the performance of larger companies has a greater impact on the overall movement of the index.

The FTSE 100 is often used as a benchmark for the performance of the UK stock market and as an indicator of the overall health of the UK economy. It provides a snapshot of the performance of the country’s largest and most liquid companies across various sectors. The index covers a wide range of industries, including finance, energy, consumer goods, healthcare, and technology.

The constituents of the FTSE 100 are reviewed quarterly to ensure that the index continues to represent the largest and most actively traded companies in the UK. Companies can be added or removed from the index based on their market capitalization and other eligibility criteria.

Investors and analysts closely monitor the performance of the FTSE 100 to gauge market trends and assess the performance of their portfolios. The index is used as a benchmark for evaluating the performance of investment funds, exchange-traded funds (ETFs), and other financial products. It is also used as a reference point for derivatives trading and as a basis for index-tracking funds.

It’s important to note that the FTSE 100 represents the performance of companies listed on the London Stock Exchange and does not include companies listed on other exchanges in the UK or internationally. Additionally, the index does not take into account dividends or other income generated by the constituent companies.