Defining The Ftse 250 And The Largest Operating Companies On The Planet

2111 Words Nov 29th, 2015 9 Pages
1. Defining the FTSE 250

The FTSE is bantered around a lot within financial circles and seems to be a key element within many news headlines too. While the term FTSE is commonly known, few actually understand the FTSE 250 and what it entails. In order to educate those who are unfamiliar with what it is, the following information should be of great use.

Leading Index

Widely considered to be one of the leading indices in the world, the FTSE 250 is an index that features some of the biggest operating companies on the planet. However, some may be unsure of what of an index is generally. The purpose of an index is actually pretty self-explanatory on the surface, it a tool used to summarise the performance of a selection of publically floated companies. In particular indices more often than not highlight leading and noteworthy companies or stocks that have a large amount of investor interest. All indices work on a league like structure, in which a company can go up and down the rankings based on performance. The score of any index is also totaled in order to give investors an overview of the companies’ featured all-round performance. For example, should you see that the FTSE 250 has risen by 50 points then you can ascertain that index is performing positively.

FTSE 250

The FTSE 250 is the second biggest index in the world, ranking companies that feature in spots 101 to 350 in terms of size and performance. The large percentage of companies that feature within the FTSE 250 are…
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