What is FTSE Index? The FTSE 100 index is very widely used in Europe. Let's explore more in this article.
What is FTSE Index?
Financial Times Stock Exchange (FTSE) 100, which comprises the hundred largest companies listed on the main market of the London Stock Exchange by market cap. The index is also referred to as the 'Footsie'.
The Footsie also features a high proportion of companies from the financial, commodity, oil & gas and pharmaceutical sectors including the likes of BP, HSBC, Barclays, Glencore and AstraZeneca.
How Does It Work?
The total market capitalization of the component firms and the index value are used to determine the FTSE 100's level. Throughout the trading day, the index value changes together with the total market capitalization of the indexed companies' individual shares. The previous day's market closing is used to determine whether the FTSE 100 is quoted higher or lower. Every trading day, from the opening of the market at 8:00 am until the LSE closes at 4:30 pm, it is continuously calculated. A reduction in the FTSE 100 indicates a decline in the value of the biggest UK-listed companies. The value of all the indexed companies has increased as the FTSE reaches a new high.
Adjustment of the index constituents (the companies that make up the FTSE 100) happens every quarter, usually the Wednesday following the first Friday in March, June, September, and December. Any changes to the underlying index constituents and their weighting comes from the values of the companies taken at the close of business the night before the review.
What is FTSE Index? How Does It Work? - Hopefully, this article can help you to get some knowledge.
