What is it?

The FTSE 100 is an index of the 100 companies that have the largest market capitalisation (i.e. those with the highest present value) of all companies listed on the London Stock Exchange.

Why is the FTSE 100 important?

• It is seen as an indicator of success of the British economy.
  
  
• The FTSE 100 is arguably the leading share index in Europe.
  
  
• It is rumoured to account for around 80% of the UK share market.

Interesting Facts:

1. It first traded on the 3^rd January 1984
   
   
2. The constituents of the index are reviewed on a quarterly basis and the current threshold for promotion into the FTSE 100 is around £2 billion market capitalisation.
   
   
3. The FTSE 100 is run and maintained by the FTSE Group but was originally set up as a joint venture between the Financial Times and the London Stock Exchange. This led to the abbreviation FTSE which stands for Financial Times Stock Exchange.
   
   
4. FTSE is pronounced footsie
   
   
5. The FTSE 100 has trading times of 0800 – 1629 with the closing values being recorded at 1635. 
   
   
6. It’s highest ever value (at time of writing) was 6950.6 and was set on December 30, 1999.