FTSE 100 Index

The FTSE 100 is like a special club for the 100 biggest and most important companies in the United Kingdom. Think of them as the superheroes of the business world! These companies are so big, they are called 'blue chips'. They are all listed on the London Stock Exchange, which is like a giant marketplace where people can buy and sell tiny pieces of these companies.

The FTSE 100 started way back in 1984. Before that, people used different ways to track how well the biggest companies were doing. The idea was to create one clear list that showed the top 100 companies based on their size. It’s like deciding who the top 100 players are in a giant game of business!

This list helps us understand how the biggest companies in the UK are doing. If the FTSE 100 is going up, it means these big companies are generally doing well, which is good for lots of people. If it goes down, it means they might be having a tougher time. It’s like a report card for the UK’s biggest businesses!

The companies on the FTSE 100 are chosen because they are the biggest in terms of their value. This is called 'market capitalisation'. Imagine you have a giant pile of LEGO bricks, and the company with the biggest pile is at the top! The list is checked regularly to make sure it always has the 100 most valuable companies.