The London Stock Exchange

The London Stock Exchange (LSE) is one of the largest financial markets in the world. Based in Britain’s capital city, it has a history that dates way back to 1571 during the reign of Queen Elizabeth I when trading happened in a coffee house outside what was then called the Royal Exchange. It continued to evolve in name, structure, and location over the next several centuries until the many regional exchanges of the United Kingdom merged to form what is known today as the London Stock Exchange.

Similar to other exchanges, the LSE has multiple market levels depending on the type of transaction and the companies involved. Its Main Market is where over a thousand of the largest and most established global companies reside to gain access to funding securities. The benchmark index for the LSE focuses on this level is and is known as the FTSE 100, or footsie for short, which tracks the top 100 listed organizations. Smaller companies are found in the Alternative Investment Market (AIM) where they can access more capital to fuel their growth.

Currently, the LSE has over 2,000 different companies coming from 60 countries listed under it which gives it a total market value of £4.1 trillion pounds. Because it includes a wide array of companies from around the world, it also features the largest number of exchange traded funds tracking emerging markets such as those in Africa, Central America, and China.

Taken together with other financial markets such as the London Metal Exchange, the LSE has played a significant role in making London Europe’s financial capital.