London Stock Exchange — aristocratic exchange from the heart of England
In the earlier material, we talked about the two main US exchanges – the New York Stock Exchange and the NASDAQ Exchange, where securities of major technology companies are traded. Now we are “moving” to the British Isles, where the London Stock Exchange is based in the capital of England. It is considered the most cosmopolitan, as more than half of the shares represented on it belong to companies from different parts of the world.
London Stock Exchange: royal roots
The history of the exchange began shortly after the appearance of the first organized trading operations in England. The oldest records of them are dated 1565, when a financial agent and one of the Queen’s advisors, Thomas Gresham, financed the creation of the Royal Exchange from personal funds. It exists to this day. Officially, the London Stock Exchange, the stock exchange of the exchange, appeared in 1801.
Since then, it is one of the oldest and largest stock exchanges in the world, which even the Second World War, could not stop. It is known that once the building of a financial institution landed a rocket. Because of this, the auction was moved to the basement.
There have been other difficult events in the history of the site. On October 19, 1987, the so-called “Black Monday”, the main index of the FTSE 100 stock exchange dipped by more than 30%, “dropped” the value of the represented companies by £ 65,000,000 and provoked the onset of a short-term global financial crisis. Great Britain and other countries recovered from it after a couple of years.
H3: What is the largest stock market like in Britain?
The London Stock Exchange, in addition to working as an exchange, is also a community of shareholders. Her securities can be bought here. It also forms the London Stock Exchange Group, which includes the Italian Stock Exchange, the infrastructure providing the technical and informational work of the platforms, the central counterparty guarantee system and the electronic trading system. Even earlier, in the 70s of the 20th century, the exchange merged with 11 other markets.
As of January 2019, more than 2,000 companies from around the world, including Russian, are traded on the London Stock Exchange. These include, in particular, the largest domestic oil and gas company Rosneft, the metallurgical corporation Euraz, another oil company, Lukoil, and a poultry, pork and compound feed processor Cherkizovo.
The current capitalization of the exchange goes beyond 4 trillion dollars. Its main advantage is working with international assets. Since the majority of transactions involving international companies are listed here, its indices illustrate not only the situation in the UK economy, but also the picture of Europe as a whole.
If you wish to trade on the London Stock Exchange, this is possible with the help of external brokers. It is best to use foreign, as they provide insurance services to your money. As with other exchanges, the general recommendation concerns the allocation of funds across different financial baskets. ” It makes no sense to acquire securities of one company, since it is risky.
Despite the fact that the UK has not played such an important political and financial role in the world for a long time, as it was during the heyday of the Kingdom, stock activity has never ceased here. The long history of the life of the London Stock Exchange, the degree of its respect among investors and the level of influence are vivid examples.
