So, what exactly is the FTSE?

FTSE stands for the Financial Times Stock Exchange Group. This is an index compiled of 100 leading company shares that are traded on a stock market.

The FTSE, as the name suggests is an index established by the Financial Times, but also the London Stock Exchange. The FTSE was set up as a way of keeping track of the shares on the London
Stock Exchange.

Commonly referred to as the “Footsie”, the index is most generally seen split into smaller sub-indices.
Such as the FTSE 100 (the 100 biggest companies), the FTSE 250 (the next 250 biggest companies after
the first 100) and the FTSE All Share (all the shares in the London Stock Exchange).

The FTSE 100 is used most often, by newspapers and on TV, as the 100 largest companies in the UK are a
good indication of our overall economy.

You can invest in an index as a whole using a tracker fund. For more information and a guide to how to invest download The Cappuccino Factor from our personal finance page.