What is the FTSE 100 and Why does it matter?


The FTSE100 also known as the Financial Times Stock Exchange 100 share index is the average share prices of the 100 largest publicly traded companies on the London stock Exchange💰. ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
The FTSE is actually run by the FTSE Group which is a joint venture between the financial times(yes, the newspaper) 📰and the London stock exchange📈. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
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The FTSE or the footsie 100 as its is commonly known is an index that measures the performance of the 100 largest companies listed on the London Stock exchange which is also known as the LSE (not to be confused with the university😅) It measures the combined daily share performance of those 100 firms👀.

If the FTSE 100 is going up then it generally means that the general UK stock market is going up.

The FTSE 100 includes companies such as easyjet, experian and hsbc.

So what does the FTSE 100 indicate? ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀

If the FTSE 100 is down this means there are more people selling shares of companies in the FTSE 100 than there are people buying shares 🏃‍♂️🏃‍♀️of FTSE 100 companies. If more people are buying the shares of companies from the FTSE 100 then the FTSE 100 will be up.
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There are many other indices such as the FTSE 250 or the FTSE 350. The FTSE 100 is used by investors to gauge which way the market is moving...hence market sentiment.
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Investors use the FTSE to also predict where the UK economy is going and as such, it’s a very big deal.
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(Hence why majoor firms in the UK go Bankrupt, you always see some kind of Government intervention or critique)

How do you invest in the FTSE 100?

You can invest in the FTSE 100 through ETFs( Exchange traded funds)

ETFs can be expensive and you should be wary of those which have a high concentration of a certain industry or sector. E.g the Uk has a high concentration of financial services firms, these means the FTSE 100 might have a high amount of financial services firm. This might put your investment at risk if the financial markets go through a downturn.

When investing through Robo advice platforms etc, it is important to know exactly where your money is being invested to and what proportion.

Our lawyers asked us to remind you. This is not meant to be interpreted as financial advice.ALWAYS SEEK INDEPENDENT FINANCIAL ADVICE.

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