According to Readhead (2008) the FTSE 100 index, commonly called footsie, is a share index of the 100 capitalized British companies listed on the Stock Exchange. The FTSE was created and on 3rd January 1984. Its key indicator is the FTSE 100; the index has a base level of 1000. Companies in the index account for 70% of the total capitalization of the stock market in London, the values are weighted by capitalization criteria and its composition is reviewed quarterly.
Since the performance of smaller company shares can differ substantially from that of large company shares, the focal point of the FTSE 100 on capitalized companies means that it does not totally reflect the behaviours of the stock market as a whole. The FTSE 100 is also commanded by a small figure of industries: telecommunication, oil, pharmaceuticals, and financial sector companies. This tendency towards a few sectors reduces the ability of the FTSE100 to reflect the whole market, cited by Readhead (2008).
There is others FTSE indexes known in the market like the FTSE 350 Index, the FTSE 250 Index, FTSE Fledging and the FTSE SmallCap index, cited by Readhead (2008).
The FTSE 100 for the First Group PLC company is show bellow:
Source: First Group Company PLC (2012)
BIBLIOGRAPHY
Book:
- Readhead, K. (2008) "Personal Financial and Investment " First Edition. Routledge. USA.
ok - so 20 of you have all called your blogs Financial Management - please title it with your company and your name! Your intro is ok but it is all quotes from other sources as opposed to anything in your own words.
ReplyDeleteYour 2nd post is certainly more useful in terms of summarising and the reading you have done, as well as indicating your understanding of the FTSE indexes.