It was created as a joint venture between the Financial Times and the London Stock Exchange and is maintained by the FTSE group, which is now listed as a limited company in its own right.
The index is composed by ranking the companies according to their What are value stocks? A value company is a company that app... More capitalisation based on widely held stock. A company with a market capitalisation that is worse than the firm in 111th position will be replaced.
A company that is not listed on the index will be listed if its market capitalisation becomes better than the company in the 90th position. The composition of the index is reviewed quarterly in March, June, September and December.
The index was first published in 1984 with a base index value of 1000. There are several versions of the FTSE index, such as the The FTSE 100 is a stock index of the 100 largest companies... More, FTSE 250, FTSE 300 and FTSE SmallCap, depending on the number of companies taken into account.
FTSE is pronounced as footsie rather than by its initials.