What is the FTSE 100 Index?

The FTSE 100 is a popular and widely quoted and traded market index. The share index acts a gauge of how businesses regulated by company Law in the U.K are performing. The index measures the performance of some of the biggest companies by market cap. Read on for a complete beginner’s guide to what the FTSE 100 index is all about.

What is the difference between the FTSE 100 & FTSE 250?

Given that the FTSE 100 lists the top 100 companies by market cap, the FTSE 250 lists the next 250 companies by size. The value of the FTSE 250 accounts for about 15% of the total value of the U.K’s equity market. The FTSE 250 index is mostly made up of mid-size companies.

Why did the FTSE 100 hit a three-month low?

The UK's FTSE 100 touched a more than three-month low on Thursday, in tandem with a sell-off in global equities, as jitters around rising interest rates held firm and as Sino-U.S. tensions further dampened the mood. The blue-chip FTSE 100 closed down 2.2%, having hit its lowest intraday level since March 20.

What happens if a FTSE 100 market cap falls below 111?

Conversely should a market cap of the company in the FTSE 100 fall below the 111 th position it is removed from the higher tier and added’ to the FTSE 250. The governing council maintains a banding system that ensures the review process does not in any way result in many changes, as a way of maintaining stability in the two indices.