The FTSE 100, also known as the Financial Times Stock Exchange 100 index, is a share index of the 100 most highly capitalized companies traded on the London Stock Exchange. It is seen as a gauge of prosperity for businesses regulated by UK company law. The index is maintained by the FTSE Group, a wholly owned subsidiary of the London Stock Exchange Group.
The composition of the index is determined quarterly and is based on market capitalisation. If a company grows its value, it is more likely to be included in the index. On the other hand, if a company’s value falls, it may be removed from the index.
The FTSE 100 index was launched on 3 January 1984 with a base level of 1000 and remained at that level for the first twenty years of its existence. From its inception in 1984 until June 2019, the FTSE 100 has risen from 1000 points to 7,204.86 points. The highest level achieved was in December 1999 when the index was at 6,930 — the equivalent of a gain of over 693%. The index has grown by an average of 4.42% per year during that period.
The FTSE 100 is a share index composed of the largest blue-chip companies in the UK. These companies provide jobs, help create wealth and have proved to be reliable investments over time. The FTSE 100 can act as an indicator of the overall performance of the economy, as it is composed of leading blue-chip stocks with strong balance sheets, and can provide insight into the direction and strength of the UK economy.
When looking at the FTSE 100, it is important to consider both the short-term and long-term performance of the index. While short-term movements may be more volatile, the index has a good track record of providing steady returns over the long haul.
The FTSE 100 is a valuable measure of how well the UK’s economy is performing, and provides a good source of insight into the financial health of the country. It tracks a wide range of leading businesses, giving investors an overview of the most successful companies operating in the UK.
The FTSE 100 provides investors with an opportunity to invest in a range of blue-chip stocks with strong balance sheets, which are generally perceived to be less volatile than smaller or mid-cap stocks. In addition, it can act as a barometer of the UK’s economy and the performance of UK businesses.
The FTSE 100 has been growing steadily since its inception in 1984. Since then, it has delivered strong returns, increasing in value by over 693%. The index has proven to be a reliable barometer of the UK’s economy, and is widely used by investors as a tool to monitor the performance of the UK’s financial markets.
