The London Stock Exchange or LSE is a stock exchange located in London. Find out more by reading our comprehensive article.
The London Stock Exchange or LES is a stock exchange based in London. It is one of the main stock markets in Europe and the world. Financial transactions on this stock exchange have suffered greatly since Brexit.
One month after the UK's withdrawal from the European Union, more than nine billion euros were transferred to European stock exchanges, including Amsterdam. However, this was an opportunity for the UK to create its own market.
To this day, the London Stock Exchange remains one of the most important stock market structures on the planet. In this investment guide, you will find all the information you need about the LES, including prices and investment opportunities.
The London Stock Exchange is a financial company created in 1801 in London, but its origins date back to 1776. The development of the London Stock Exchange expanded greatly between 1840 and 1845. At that time, the company had at its disposal half of the European railways.
Since then, large financial institutions such as banks have been listed on the LSE. Despite this position, regional securities markets grew between 1869 and 1929, a situation that entailed competition with the LSE because of the specializations of the regional markets in the securities sector, which were at the peak of their development. However, regional markets declined in favour of the London market from 1900 onwards. Since then, the number of companies seeking to be listed on the London market has continued to grow.
In 2007, the company became a group called LSEG, or London Stock Exchange Group, with the acquisition of the Italian stock exchange in Milan.
In 2009, the group continued its expansion by purchasing 60% of the capital of la turquoise. From 2009 to 2020, several large-scale share sales, acquisitions and mergers took place.
Today, the LSE has the third largest market capitalization in the world after the NYSE (New York Stock Exchange) and the Tokyo Stock Exchange. It remains an attractive market despite Brexit.
Before investing in the LSE, it is important to seek comprehensive and accurate information about this global financial market heavyweight.
The London Stock Exchange is the main financial market of the London Stock Exchange. However, it is also a private company listed on the stock exchange via the LSEG or London Stock Exchange Group. The incorporation of the stock exchange into a legal entity began in 1896.
On the London stock market, companies have the opportunity to raise capital and open up their capital to other investors of different nationalities. They can establish their portfolios in a variety of markets around the world.
A platform for exchanging values
The LSE is a huge financial market in which purchases, sales and exchanges of securities are traded daily. Transactions and negotiations take place between investors (companies and groups of companies, individuals, institutions, etc.) and investment seekers, which are mainly companies.
On the London market, investors can invest in equities, stock indices, bonds, index-linked securities and derivatives.
A platform for economic growth
Financially, the LSE is also a platform for the growth and development of companies by providing financing for their activities. To ensure their development, listed companies can issue securities that provide them with liquidity to ensure secure and rapid financing.
It is currently one of the most important sources of liquidity on global financial markets.
An index management platform
The London Stock Exchange, which is made up of thousands of companies, offers a wide range of European, British and American shares that can be traded in stocks, shares or securities. The London Stock Exchange lists these companies according to a predefined classification system. The platform is responsible for managing all the indexes under its control, i.e. the FOOTSIE.
Stock market listing: ongoing evaluation of the price of each share.
The LSE manages more than a thousand companies on the “Main Market” of the London Stock Exchange.
In order to provide a better quotation for each share, the LSE strictly monitors the fairness of the exchanges and the application of laws and regulations in force.
The LSEG is a separate entity from the London Stock Exchange. It is an international group consisting of the LSE, the Italian Stock Exchange and several companies and financial markets, which include:
The LSE Group had a market capitalization worth GBP 27.61 billion at the end of 2019, which increased to almost GBP 29 billion at the end of 2020. The London Stock Exchange Group Plc is the management company of the London stock market.
LSEG is listed on the London Stock Exchange under the symbol LSE.L. Investors who wish to invest their capital can invest in LSE.L shares.
As of December 31, 2019, the group's major shareholders are: Qatar Holding 10.20% - Qatar Investment Authority 10.00% - Lindsell Train 6.89% - Capital Research & Management 6.38% - Horizon Kinetics Asset Management 5.93% - Kinetics Asset Management 4.60% - BlackRock Investment Management 4.57% - Invesco Asset Management 4.19% - Fidelity Management & Research 2.80% - The Vanguard Group 2.53%
A stock market index is an indicator corresponding to the growth rate of a stock or a portfolio of stocks over a period limited by two dates. The stock market index also refers to a set of stocks that serve as a reference for evaluating a specific area of a stock market, economy, or sector of activity. It is made up of a number of the most important and most efficient stocks in a given stock market.
The Footsie or FTSE 100 is the main stock market index of the London Stock Exchange. This index is made up of the 100 largest British market capitalisations. The LSE also includes the FTSE 250, which includes 250 companies and groups. The LSE.L index or LSEG share belongs to the Footsie stock index.
Here are the main indices of the London Stock Exchange accessible in intraday:
The top 20 companies listed on the FTSE 100 are: INTL CONSOLIDATED AIRLINES GROUP SA (1st) - KINGFISHER PLC (2nd) - B&M EUROPEAN VALUE RETAIL S.A. (3rd) - GVC HOLDING PLC (4th) - OCADO GROUP PLC (5th) - STANDARD CHARTERED PLC (6th) - SEGRO PLC (7th) - NATWEST GROUP PLC (8th) - LAND SECURITIES GROUP PLC (9th) - LLOYDS BANKING GROUP PLC (10th) - HSBC HLDGS PLC (11th) - HIKMA PHARMACEUTICALS PLC (12th) - JUST EAT TAKEAWAY.COM NV (13th) - MORRISON (WM). SUPERMARKETS PLC (14th) - UNITED UTILITIES GROUP PLC (15th) - BRITISH AMERICAN TOBACCO PLC (16th) - ASTRAZENECA PLC (17th) - RENTOKIL INITIAL PLC (18th) - PENNON GROUP PLC (19th) - BAE SYSTEMS PLC (20th)
From 2007 onwards, the LSE share price has been on a steady positive trend in all areas, including performance, asset value and the companies that make it up.
The various factors that impact the price of the London Stock Exchange:
Internal and external factors can influence LSE's share price. For LSE. G, the trading volume on the two main stock exchanges (London and Italy) is the most important. But other factors cannot be ignored:
The LSE.G Group is a powerful group of financial companies. The LSE or London Stock Exchange is also a stable market of financially and sectorally impressive stocks. Investing in the LSE can be a good business opportunity. Because of the performance of the companies that make up the LSE, it is probably more advantageous to invest in the LSE index than in each individual stock that makes it up. But if an investor has significant financial capacity, investing in both the LSE share and the companies that make up the LSE could be a great business opportunity.
The LSE share is open to all investors, regardless of type (individuals and companies). Investment in the stock can be made on a stockbroker site. If you have significant financial capacity, you can invest in LSE and its constituent stocks.
How can you follow the LSE share price ?
You can follow the evolution of the LSE share price and its main indexes online on a stockbroker's website or on a website specialized in the stock market such as Boursorama, Etoro, Google Finance, Yahoo Finance and many other online platforms.
No, the London Stock Exchange are part of the stocks that go into the FTSE100 index, so they are two very different prices.
How much can investing in LSE stock earn ?
There is no fixed grid or predetermined amount to be obtained. The investment in any stock depends on several parameters:
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