Investor's wiki

Footsie

Footsie

What is the Footsie

Footsie is shoptalk for the Financial Times-Stock Exchange 100 Share Index (FTSE 100).

BREAKING DOWN Footsie

The Footsie is an index that tracks the 100 biggest public companies by market capitalization that trade on the London Stock Exchange (LSE). The FTSE 100 addresses in excess of 80 percent of the LSE's market capitalization. FTSE is an abbreviation for the Financial Times and the LSE, its original parent companies. The FTSE is currently owned and kept up with by the London Stock Exchange Group. It has comparable significance in London to the U.S. Dow Jones Industrial Average and S&P 500 and is a major indicator of the performance of the more extensive market.

The level of the FTSE 100 is calculated utilizing the total market capitalization of the constituent companies and the index value. Total market capitalization changes with individual share prices of the indexed companies all through the trading day, so the index value additionally changes. At the point when the FTSE 100 is quoted up or down, it is estimated against the previous day's market close. It is calculated ceaselessly on each trading day from 8:00 AM at the market opening until the 4:30 p.m. LSE close. A FTSE 100 decay means the value of the biggest UK listed companies decreasing. The FTSE hitting another high means the total worth of the multitude of indexed companies expanding.

FTSE organization

The FTSE 100 was sent off in 1984. From that point forward, its cosmetics has changed to reflect mergers and acquisitions as well as entering and leaving companies, highlighting its function as a barometer of market activity. A company need not be British to be in the FTSE however must be listed on the LSE. Since large numbers of the listed companies are unfamiliar based or do most business overseas, the value of the pound is a factor too. A more fragile pound means a dollar-based company would be worth more in pounds, and a rising pound means companies carrying on with work in Europe would earn less in the U.K.

The FTSE audits the parts of the FTSE 100 quarterly to guarantee it incorporates the highest market cap companies. FTSE likewise explores and distributes numerous other indices that track many securities and financial instruments Other FTSE UK indices incorporate the FTSE 250, which incorporates the next 250 biggest companies after the FTSE 100 and the FTSE SmallCap, which incorporates the next more modest group of companies. The FTSE 100 and FTSE 250 make up the FTSE 350, and along with the FTSE SmallCap contain the FTSE All-Share.