Currently the worlds 6th largest stock exchange, London Stock Exchange is not only the largest Exchange in the U.K. but is fighting with Euronext for the title of biggest in Europe. In the next few paragraphs we will provide you with a short introduction into an establishment that was founded over 440 years.
How it Start?
Founded in 23rd of January 1571 by English financier Thomas Gresham, The Royal Exchange was opened by Queen Elizabeth 1 of England. Due to the fact that stock brokers were not allowed in the Royal Exchange, they operated in establishments in the vicinity, one of the most notable being Jonathan’s Coffee-House. This practice and many wars, fires, and regulations led to the founding of what we today call the London Stock Exchange in 1801. This Exchange has been around 217 years or 447 years depending on who you ask. Sitting in the heart of the London, England UK on Paternoster Square, just a stones throw from the historic St. Pauls Cathedral, LSE has been an important part of the global economy for centuries. London Stock Exchange Group has owned and operated the LSE since the merger with Milan Stock Exchange, and Borsa Italiana in October 2007.
What does it do?
The London Stock Exchange Group is a diversified international market infrastructure and capitals market business that operates a broad range of international equity, bond and derivatives markets. LSE is the premier source of equity-market liquidity, benchmark prices, and market data in Europe. Linked to international exchanges in Asia and Africa, the LSE works to remove cost and regulatory barriers of the capital markets worldwide. Operating on similar times as the rest of the exchanges, the LSE is open to trading from Monday to Friday 8:00 a.m. to 4:30 p.m. Europe/London time zone.
The LSE trades share in Euro (EUR). Most companies listed in the LSE are based in the United Kingdom though it lists companies from 45 other countries.
How does it compare?
With a market capitalization of $ 4.297 Trillion adjusted US Dollars as of October 2017; the LSE is the 6th biggest exchange in the world out of the 77 that are tracked. The LSE had reached as far as 3rd place in 2014, but as other exchanges rose the LSE was brought down to its current position in 6th place.
The population of the United Kingdom is approximately 62.35 million people and the country has a GDP of $2.49 Trillion adjusted US Dollars. Market Capitalization to GDP ratio, which is an indicator that market is over or under valued, is at 145.12%.
Now that you know the basics of what the LSE offers you can make an educated decision on whether or not to invest in companies found in this exchange. The LSE is known for bringing companies and others seeking capital together with investors from around the world. So you will always stay up to date on the availability of all up and coming opportunities around the globe.