How is the FTSE 100 calculated?
The FTSE 100 is calculated by weighing all stocks listed on the London Stock Exchange by market capitalisation. The 100 companies with the highest market caps make it into index.
Stocks with higher market caps have more weight in the FTSE 100 and therefore have a bigger effect on the index’s price movements. The market capitalisation of each company is reviewed once a quarter, and the index is adjusted if necessary.
Some of the top FTSE 100 constituents include Royal Dutch Shell, GlaxoSmithKline, Unilever and Barclays. You can view a full list of FTSE 100 constituents here.
