UK Stock Exchange: A Brief Overview
The UK Stock Exchange, also known as the London Stock Exchange (LSE), is one of the oldest and largest stock exchanges in the world. It was founded in 1571 by Thomas Gresham, a merchant and financier who wanted to create a regulated marketplace for trading securities. The LSE has been at the forefront of innovation and development in the financial sector, introducing electronic trading, listing international companies, and launching various indices and products.
The LSE operates two main markets: the Main Market and the Alternative Investment Market (AIM). The Main Market is the primary market for established companies that meet high standards of governance, transparency, and liquidity. The AIM is a growth market for smaller and more dynamic companies that need access to capital to expand their businesses. The LSE also offers other specialised markets, such as the Professional Securities Market, the Specialist Fund Market, and the High Growth Segment.
The LSE is home to some of the most well-known and influential companies in the world, such as BP, HSBC, GlaxoSmithKline, Unilever, and Vodafone. It also attracts many foreign companies that want to access the UK's deep and diverse pool of investors and benefit from its strong regulatory framework and reputation. As of April 2021, there were over 2,000 companies listed on the LSE, with a combined market capitalisation of over £4 trillion.
The LSE is also a leading provider of indices and data services, such as the FTSE 100, the FTSE 250, and the FTSE All-Share. These indices track the performance of different segments of the UK stock market and serve as benchmarks for investors and fund managers. The LSE also offers a range of data products and analytics tools that help customers make informed decisions and gain insights into market trends and opportunities.
The LSE is part of the London Stock Exchange Group (LSEG), which also owns other exchanges and platforms around the world, such as Borsa Italiana, Turquoise, MTS, MillenniumIT, and Refinitiv. The LSEG aims to be a global leader in financial markets infrastructure and data services, supporting customers across multiple asset classes and geographies.