What is the FTSE 100 and Why It Matters to Investors?

The FTSE 100 , one of the most widely recognized indices globally, serves as a benchmark for the overall performance of major UK-listed companies. Representing the top 100 companies listed on the London Stock Exchange by market capitalization, the FTSE 100 index plays a pivotal role in gauging the health of the UK economy and guiding investment strategies. Investors, analysts, and economists closely monitor the FTSE 100 share price movements as they reflect the broader market sentiment and economic conditions. Understanding how the index works and the factors influencing it can help investors make more informed financial decisions. What is the FTSE 100 Index? The FTSE 100 index , often referred to simply as the "Footsie," was established in 1984 by the Financial Times and the London Stock Exchange (LSE). It is a capitalization-weighted index, meaning that larger companies have a greater influence on the index’s overall performance. The index includes blue-chip companies from ...