FTSE 100 Index

The FTSE 100 Index, also known as the Footsie, is made up of the 100 most capitalized companies listed on the London Stock Exchange. It is the most widely used of the FTSE group's indices and is frequently viewed as a measure of business prosperity.

The index is maintained by the FTSE Group, a company which began as a joint venture between the Financial Times and the London Stock Exchange. FTSE does not give financial advice to clients, which allows for the provision of objective market information.

FTSE indices are used by range of investors such as consultants, asset owners, fund managers, investment banks, stock exchanges and brokers. The indices are used for investment analysis, performance measurement, asset allocation, portfolio hedging, and the creation of index tracking funds.

The FTSE 100 is the most commonly used stock market indicator in the United Kingdom The index is calculated in real time and published every 15 seconds. Other related indices include the FTSE 250 (the next largest 250 companies after the FTSE 100), the FTSE 300 (the aggregation of the FTSE 100 and 250), the FTSE Small Cap Index, and the FTSE Fledgling Index.

The makeup of the FTSE 100 index is determined on a quarterly basis. The largest companies in the FTSE 250 Index are promoted if their market capitalization would place them among the top 90 firms in the FTSE 100. In January 2009, HBOS was replaced by Balfour Beatty.

The five largest companies in the index are BP (energy), HSBC Holdings (financial), the Vodafone Group (mobile telecommunications), GlaxoSmithKline (pharmaceuticals), and Royal Dutch Shell (energy). Each is valued at more than 60 billion pounds. The net market capitalization of the FTSE 100 late in 2008 was more than 1.71 billion pounds.

The FTSE was named the "Leading Index Provider of the Year' in 2008 by Global Pensions Magazine. A panel of experts representing leading asset owners worldwide selects the award. The FTSE 100 was cited for its innovative approach to indexing.

In keeping with the FTSE's mission to be a part of the global community, it has worked with the United Nation's Children's Fund since 1997.

FTSE 100 Index Articles - by BetterTrades