Highlight of LONDON STOCK EXCHANGE

Current London Stock Exchange (LSE) Trading Floor

stations of LSE employees

1985 London Stock Exchange Trading Floor

Stock 101 seminar here
PHILIPPINES)

One of the office or working

The way they conduct a seminar (like

in the

Main Entrance of LSE before you go in the TRADING FLOOR

Opening ceremony for IPO (Initial Public Offering)

The way they act or buy (using hand symbols) on a particular stock or something called public
AUCTION of stocks

WEBSITE: http://www.londonstockexchange.com/home/homepage.htm

A view from the south of Paternoster Square in London, England from the top viewing deck of St.
Paul's Cathedral. Paternoster Square, City of London, England the new home of the London Stock Exchange
and next door to St Paul's Cathedral. Paternoster Square. The LSE occupies the building that takes up much of
the right side of this picture.

London Stock Exchange is one of the worlds oldest stock exchanges and can trace its history back more
than 300 years. London Stock Exchange Group was created in October 2007 when London Stock Exchange
merged with Milan Stock Exchange, Borsa Italiana.

London Stock Exchange Group Timeline

October 2007
London Stock Exchange and Borsa Italiana merge, creating Europes most diversified Exchange Group.
December 2008
London Stock Exchange Group and Oslo Brs announce strategic partnership including the provision of
trading services to its equities, fixed income and derivatives markets.
March 2009
The Board of London Stock Exchange Group appoints Xavier Rolet as Chief Executive.
September 2009
MillenniumIT, a premier technology solutions provider serving the global capital markets industry is
acquired.
December 2009
London Stock Exchange Group acquires majority stake in Turquoise and launches pan-European
trading partnership with global investment banks.
November 2010
London Stock Exchange Group launches its charitable Foundation, which focuses on supporting
selected initiatives in the communities in which it operates.
January 2011
European Central Bank approves Monte Titoli, the largest and only Eurozone Central Securities
Depository, to participate in the first wave of implementation of Target2-Securities.
January 2011
A strategic partnership is signed with the Mongolian Stock Exchange.

December 2011
London Stock Exchange Group plc acquires outstanding 50 per cent of FTSE International Limited,
giving LSEG 100 per cent ownership and strategic control.

21 February 2012
Agreement with Google gives global users access to real-time last trade price data for trades on
London Stock Exchange and Borsa Italiana.
March 2012
LSEG agrees to acquire majority stake in LCH.Clearnet Group Limited.
April 2012
London Stock Exchange Group raises 529,400 in first Charity Trading Day.
February 2013
London Stock Exchange Group acquires a 67 per cent stake in Gatelab, an Italian and UK based
technology company.
April 2013
FTSE Group and TMX Group announce a definitive agreement to combine their fixed income index
businesses in a new joint venture: FTSE TMX Global Debt Capital Markets.
May 2013
London Stock Exchange Group completes purchase of majority stake in LCH Clearnet.
December 2014
London Stock Exchange Group completes the acquisition of Frank Russell Company.

TRADING HOURS
Trading on the London Stock Exchange begins at 7:50 a.m. with an opening auction and ends at 4:35 p.m.
at the end of a closing auction, according to Money-Zine.com. Before the opening auction, trade reporting begins at
7:15 a.m. Order maintenance and trade reporting ends the day at 5:15 p.m.

BUSINESS DAYS
London Stock Exchange plc. generally operates its Trading Services each weekday. It does however,
recognize the Public and Bank Holidays of England & Wales and the impact on its Trading Services of these
days are set out in the table below.
The operational hours of each of our trading services is set out in the Millennium Business Parameters
Document which can be found here.
Whilst the International Order Book observes the same trading calendar as the rest of our Trading
Services it operates its own Settlement Calendar.
London Stock Exchange will keep its days of operation under review. As of 2016.

The role of the Exchange

The London Stock Exchange enables companies from around the world to raise money from outside
investors. Its main aim is to provide attractive, efficient and well-regulated markets for companies, investors
and intermediaries, such as stockbrokers.
The Exchange is one of the worlds oldest stock exchanges and can trace its history back to the coffee
houses of 17th century London. For many decades, the Exchange provided a trading floor where members of
the Exchange could buy and sell shares. Today, share trading is almost entirely done through computers and the
Exchange offers this service with state-of-the-art systems that can process over a million trades every single
day.
The Exchange is not only one of the oldest exchanges in the world, it is also one of the most prestigious,
supplying high-quality prices, news and other information to the financial community, not just in the UK but
across the world.
The Exchange sends data to over 100,000 terminals in more than 100 countries. This data varies from
live share prices to financial announcements, made via the Regulatory Information Services.
For investors, the London Stock Exchange provides access to the shares of thousands of UK and
overseas companies, as well as other financial securities, such as bonds.
For companies, the Exchange provides access to thousands of investors from around the world, ranging
from large financial institutions to private individuals.
When a company chooses to join the London Stock Exchange, it can list shares on the Main Market or
seek admission to AIM.
Companies listing on the Main Market have to satisfy certain regulatory criteria, providing audited
statements for at least three years and being valued at 700,000 or more. Over 1500 companies are listed on the
Main Market and some of the biggest are capitalized at more than 90 billion.
AIM was created by the London Stock Exchange in 1995 to offer smaller companies the chance to raise
money from outside investors. Since then over 3000 smaller, growing companies have joined AIM. Currently
there are around 1450 companies on the market operating across 39 sectors in 100 countries.
Companies whose shares are traded on the London Stock Exchange vary enormously. The smallest
companies are valued at less than 1 million. The largest are valued at more than 90 billion. Some are based in
the UK and derive most of their earnings from Britain.
Some are based overseas and many are international, headquartered in one country but doing business in several
locations.
Naturally too, these companies operate in different fields, ranging from biotechnology to banking and
from engineering to oil exploration.
From an investors perspective, it is important to recognize that different shares have different
characteristics, depending on the size and nature of the company in question.
In stock market terminology, a companys value is measured by calculating how much its shares are
worth in total.

If a company has 1000 shares in issue and each is worth 100p, for example, the company is capitalised
at 1000. If the share price rises to 150p, the company will be capitalised at 1500.
This is often referred to as a companys market cap.
The biggest companies on the Exchange are often known as Large Caps; those in the FTSE 250 can be
described as Mid Caps and the smallest shares are known as Small Caps.
Large Caps are sometimes referred to as Blue Chip shares and many of them share certain
characteristics. Typically they are more heavily traded than smaller stocks, which make it easier for investors to
buy and sell them. Technically speaking, they are more liquid, which essentially means they are easier to
trade. Smaller company shares, by contrast, can be less liquid which means their shares are traded less regularly.
Stockbrokers tend to divide shares into different categories, such as defensive versus cyclical or growth
versus income. Defensive stocks are those which are likely to do better when the economic environment is
harsh. These companies are involved in sectors, such as utilities, pharmaceuticals or food retailing, that are less
dependent on external economic conditions.
The performance of cyclical stocks is more influenced by the economic cycle. They can do extremely
well during good times but may suffer badly during a recession. Such stocks include clothing retailers, banks
and recruitment businesses.
Larger companies are often at a more mature stage of their development. They have long-standing
relationships with customers and suppliers, they are highly profitable and their future seems assured. They may
not be growing in leaps and bounds each year but they are expanding steadily and paying dividends to
shareholders. Shares that pay regular and generous dividends are known as income stocks.
Smaller companies are often younger and their business model is less tried and tested. They have plenty
of potential to grow but they are also more risky from an investment perspective. They are known as growth
stocks.
FTSE (pronounced Footsie) Group is an independent organization jointly owned by the Financial Times
and the London Stock Exchange. The group creates and manages indices of shares, the most famous of which in
the UK is the FTSE 100. This index comprises the 100 largest companies whose shares are listed on the London
Stock Exchange. The index began in 1984 with a base level of 1000 and it rises and falls according to the share
price performance of the 100 companies within it. The highest value ever reached by the FTSE 100 was 6950.6
in December 1999.
The components of the index are assessed every three months. If a companys shares have underperformed, it may fall out of the index to be replaced by another company, whose shares have performed
relatively better. Generally, two or three companies drop out of the FTSE 100 every quarter.
There are other FTSE indices besides the FTSE 100. The most widely known are the FTSE 250
comprising the 250 largest companies listed on the London Stock Exchange after the FTSE 100 and the FTSE
All-Share, which includes virtually all the companies listed on the Exchange.
In the UK, the FTSE 100 is frequently used by large investors, stock brokers, financial experts and the
media as a guide to stock market performance. The index is updated continuously throughout the working day
and a closing price is calculated at 16.30 each trading day. It is possible to buy funds that invest in all the
companies within a particular index. These are known as index funds.

There are similar indices performing similar roles across the world. In the US, for example, the bestknown indices are the Dow Jones and the S&P 500. In Japan, the Nikkei is the most popular reference point.

LSE INDICES

Below is the chart example of FTSE, it is only selected companies. Actually it is alphabetical on
their website.
You can browse it at: http://www.londonstockexchange.com/home/homepage.htm

One of the Largest Stock Exchange in the World

Submitted to:
Dr. Lynn L. De Claro
Professor Financial Markets in Asia and the World
Centro Escolar University Manila
Submitted by:
Teresito B. Rustia Jr.
MBA Student
Centro Escolar University Manila