FTSE 100Financial Dictionary -> Investing -> FTSE 100
The FTSE 100 began life in 1984, with a 1000 as its base level, and is still owned and operated by the FTSE Group (a combined venture between the Financial Times and the London Stock Exchange). Currently the index represents around 81% the London Stock Exchange's total market capitalization. This 81% makes up about 1,171 billion pounds.
Other than capitalization the selection process is based on liquidity, free float, nationality, and all companies must be public limited and have a valid listing on the London Stock Exchange in either Pounds Sterling or Euros. If a company is already listed on the FTSE 250 (a band below the FTSE 100) and they expand in to the top 90 corporations in terms of capitalization, they will be promoted at the next quarterly update.
Other FTSE owned indexes include the FTSE All Share Index, the FTSE 250 Index as mentioned, and the FTSE 350 Index which combines both previous indexes. Smaller cap companies are tracked on the FTSE Small Cap Index.
Listings as of 2008 include the Vodafone Group, Cadbury, British Sky Broadcasting Group and Barclays Bank.