Important Financial Decisions
The Financial Times Stock Exchange is more commonly referred to as the FTSE. The FTSE Group was set up in 2002 as a joint venture between The Financial Times and the London Stock Exchange. It works with partners and clients in 77 countries and has offices in London, Frankfurt, Hong Kong, Beijing, Boston, Shanghai, Madrid, Paris, New York, San Francisco, Sydney and Tokyo.
The FTSE Group has created over 120,000 equity, bond and asset class indices, which it manages. It derives its income from the use of the information provided by these indices, which are organised into seven main groups - global equity, regional and partner, fixed income, real estate, alternative investments, responsible investment and investment strategy.
As the name implies, a stock market is simply a market that deals in stocks and shares. The most important component of a stock market is usually a stock exchange, which provides a formalised means of trading in stocks and shares as well as other securities. Shares can be traded 'off exchange' or 'over the counter' but a stock exchange provides a proper structure and is often part of a global market for securities.
Businesses may start as self-employed operations then become private limited companies for tax and other reasons, often with a husband and wife holding the shares. As the company grows and takes on employees, the arrangement may remain the same. Required financing may be obtained through bank loans and overdraft arrangements.
Spread betting is sometimes known as spread trading to give it a more respectable air. Nevertheless, it is still gambling because you are placing a wager on how something or someone will perform. It's not just a case of picking a winner because you not only bet on what will win or lose but by how much.
Spread betting originated in the US in the 1940s where gamblers wagered on sporting events, betting that the difference in scores between two teams was more or less than that set by a bookmaker. It became popular in the UK in the 1980s but here is more about gambling on the performance of the financial markets.
Small companies tend to be privately owned while larger ones generally have shares that are traded on stock exchanges. This means that anyone can buy shares in a company.
Although many people don't actively trade in shares, they may indirectly be share owners through their pension find. Pension providers invest in property and bonds, but the bulk of their money tends to be in shares. Thus, the performance of shares is more important than most people think because their prosperity in retirement is dependent on it.