Financefacts

Mortgages
Property
Insurance
Savings
Credit Cards
Loans
Shares
Alternatives
Pensions
Tax
Hints and Tips

From the Editor
Contact Us
Financial News
Useful Sites





What is the FTSE?

Is the FTSE 100 up today, or is it falling? More importantly, what does it mean? Let's take a closer look at what is meant by the term FTSE when talking about the London Stock Exchange.

The "Footsie" is a term most usually applied to the Financial Times Stock Exchange 100 (or FTSE 100). The FTSE 100 is an index of the leading shares on the London Stock Exchange. The index includes the largest 100 companies listed in London (by the value of shares issued) and is used as a general measure (and guide) to stock market performance.

When you hear about the FTSE 100 "rising", what it basically means is that the value of shares in the top 100 companies on the London Stock Exchange is increasing. There are various financial products that you can purchase that will follow (or track) the performance of the FTSE 100.

What about the FTSE 250?

The FTSE 100 is not the only index used - you may have heard of the FTSE 250, which basically tracks a larger number of companies. Some people feel that the FTSE 250 provides a more useful guide to the performance of the stock market. Once again, it is possible to purchase financial products that track the FTSE 250.

FTSE All Share?

The FTSE All Share does as its name suggests - it's an index of all shares on the London Stock Exchange. Once again, various tracker products are available.

Other Stock Markets around the globe have their own indices for measuring performances - look out for these next time you pick up a newspaper or see a business item on the television news.

Information on Shares:
The basics of investing in shares, Different Types of Shares, The Stock Market Explained, What is the FTSE 100?