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FTSE 100 Index (Footsie)

The most widely-quoted and 'popular' index for tracking the London stockmarket. The FTSE 100 contains the shares of the top 100 U.K. companies ranked by market capitalisation (that is, the number of shares in issue multiplied by the price per share). It is one of several indices jointly sponsored by the Financial Times, the London Stock Exchange (LSE), and the Institute and Faculty of Actuaries. The indices are managed by a jointly owned company, FT-SE International.

The FTSE 100 is a market capitalisation-weighted index, re-weighted every day and calculated every minute. It was introduced on 3 January 1984, with the level of 1,000, to replace the traditional ‘Financial Times index’ which consisted of 30 shares. At the start of 2005, the FTSE 100 index was 4800 having reached an all time high of 6900 at the start of 2000.

The index is reconstituted every quarter. Additions and deletions are performed strictly in accordance with a set of rules supervised by the independent FT-SE Actuaries Share Indices Steering Committee.

Investment funds that track the FTSE 100 and other market indices have become increasing popular with investors because of their relatively low management charges, and investment performances that often beat so-called 'actively managed' funds.

(See FTSE All share index, Index, Tracker, and Exchange Traded funds)

 

 

 

12 April, 2008
 
© 2008 K.R.Wade and Co Ltd