The British FTSE Index 100, also known as the London Financial Times 100 Index, the English name is “Financial Times Stock Exchange 100 Index”, referred to as FTSE 100 or FTSE 100. This index was developed by the FTSE Group on January 3, 1984. Established on Japan, it is one of the three major European stock indices. The FTSE 100 Index is composed of the top 100 listed companies with the largest market capitalization on the London Stock Exchange. The total market capitalization accounts for approximately 80% of the overall market capitalization of the exchange. The constituent companies are mainly British companies, but also include companies from other European countries such as Germany, France, and Italy, so they are regarded by many as a barometer of the British economy and the European economy.

The UK’s FTSE 100 is a market capitalization-weighted index, so the larger a company’s market capitalization, the greater the overall influence on stock indexes when stock prices fluctuate. As the index management agency, the FTSE Group sorts out the constituent stocks of the FTSE 100 in the UK every quarter, removes the constituent stocks that do not meet the requirements, and replaces them with the non-constituent stocks with the largest market capitalization on the London Stock Exchange. Similar to the US Nasdaq Index 100, since the selected company may have more than one stock, the number of constituent stocks of the FTSE 100 may sometimes exceed 100. For example, among the 101 constituent stocks currently (April 2020), It also includes Shell’s Class A shares and Class B shares.

The largest one-day drop in the history of the index occurred on October 20, 1987 (the day after “Black Monday”), and the drop reached 12.22% on that day.

UK FTSE 100 historical trend

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