London Stock Exchange

Overview

The London Stock Exchange (LSE) is one of the oldest and largest stock exchanges in the world. It serves as a primary market for the issuance of new securities and a secondary market for their trading. The LSE is a key component of the United Kingdom’s financial infrastructure.

Key Concepts

Markets

The LSE operates several distinct markets, including:

• Main Market: For larger, established companies meeting high standards.
• AIM (Alternative Investment Market): A market for smaller, growing companies.
• Professional Securities Market: For debt, securitised instruments, and derivatives.

Deep Dive

History and Evolution

Established in 1801, the LSE has a long history of innovation. It has undergone significant technological advancements and demutualisation, evolving into a publicly listed company itself.

Applications

Companies list on the LSE to raise capital, increase their visibility, and provide liquidity for their shareholders. Investors use the LSE to buy and sell securities, seeking returns on their investments.

Challenges & Misconceptions

A common misconception is that the LSE is solely for UK companies. It is a truly global marketplace, attracting listings and trading from companies worldwide. Challenges include regulatory compliance and competition from other global exchanges.

FAQs

What is the FTSE 100?

The FTSE 100 is an index representing the 100 largest companies listed on the London Stock Exchange by market capitalisation.

How can I trade on the LSE?

Individuals typically trade through a stockbroker or an online trading platform that provides access to the LSE markets.