The Financial Times Stock Exchange 100 Index, more commonly known as the FTSE 100, is a stock index composed of 100 companies which are listed on the UK’s London Stock Exchange (LSE). In this article, we will explain what the FTSE 100 is, provide a list of FTSE 100 companies and much more!
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The FTSE 100 Explained
The FTSE 100 is a stock index, which was first launched in 1984 and is composed of the 100 largest companies by market capitalisation listed on the LSE. In order to be included in the FTSE 100, a company must also meet minimum free float and liquidity requirements.
Each company’s stock is assigned a weighting in the index based on their respective market cap. Simply put, the larger the market cap, the more weight assigned to the stock; the more weight assigned to the stock, the more influence that stock’s share price has on the overall index.
For example, as of 30 June 2022, the top six companies in the FTSE 100 by weight were Shell, Unilever, HSBC, British American Tobacco and Diageo. Between them, they accounted for almost 37% of the entire index.
Which Companies Are in the FTSE 100?
The FTSE 100 constituents are reviewed quarterly (i.e. every three months), at which point some companies may exit and be replaced by new companies. The table below shows the list of FTSE 100 companies as of the 5 October 2022.
FTSE 100 - Frequently Asked Questions
When Was the FTSE 100 Created?
The FTSE 100 was first launched on 3 January 1984.
What Is the Highest the FTSE 100 Has Ever Been?
The FTSE 100’s highest closing value was 7,877.45 - which was achieved on the 22 May 2018.