Stock Market of U.K: Some Useful Details

The stock market of UK is one of the most important markets of the world. It is regulated by the London Stock Exchange (LSE). Among all the stock exchanges in the United Kingdom, the London Stock Exchange or LSE is the biggest. It was established in 1801.

In the stock market of UK, following are the core business areas:

  • Trading services (buying and selling)
  • Equity markets
  • Derivatives
  • Market information

Besides the LSE, there are some other stock exchanges in the UK and they are the following:

  • PLUS or Plus Markets plc
  • SWX Europe
  • ShareMark

At present, there are more than 3000 companies listed with the London Stock Exchange and 350 overseas corporations of 50 different countries are listed with it, as well. It is also participating in joint ventures with the Asian and African international stock exchanges.

In March 2007, the London Stock Exchange achieved the 4th rank among all other important stock exchanges across the world in terms of market capitalization.

The LSE became a public company in 2000. A broad range of small cap, mid cap and large cap companies are traded on this exchange.

The London Stock Exchange comprises two stock markets and they are the following:

  • The Main Market
  • The Alternative Investment Market (AIM)

The overall trading system of the LSE is computerized. Nevertheless, various shares are traded on various systems like the SEAQ and SETS. In 2003, the LSE launched a new and developing exchange for equity derivatives that is known as EDX London. The aim was to position it as the main derivatives market all over the world.

Market Indices

FTSE or Footsie is the stock market index of LSE. For assessing the performance of the London Stock Market and gauging the price trends of the shares and stocks, the self-governing FTSE group maintains a set of indices, which consists of the following:

  • FTSE 250 Index
  • FTSE 100 Index
  • FTSE 350 Index

Other indices of the LSE include the following:

  • FTSE All-Share
  • FTSE AIM 100
  • FTSE AIM All-Share
  • FTSE SmallCap
  • FTSE Tech Mark 100
  • FTSE AIM-UK 50
  • FTSE Tech Mark All-Share

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