London Stock Exchange (LSE) is one of the oldest, and also the largest stock exchanges in the world. Currently, the main market recorded 1,300 companies in sixty different countries, including BP, Royal Dutch Shell, SABMiller, Vodafone, Tesco. LSE also distinguished Alternative Investment Market (AIM) for young, rapidly growing companies. Currently, it recorded about 1,200 companies.
The best-known index of the London Stock Exchange FTSE 100 is also known as the footsie. It consists of one hundred companies listed on the LSE with the largest market capitalization. Quotations refresh at every fifteen seconds. Companies of this index represent about 80% of capitalization of companies listed on the LSE. Other important indexes are the FTSE 250 index (250 companies with an average capitalization of the quarterly update) and the FTSE SmallCap index.
Each of us deciding to invest in the stock market should pay attention to several important aspects. Taking into account our future, real wages we must be kept in mind: the brokerage commission from both the stock and ETF, costs of conversion (the best is to invest directly in British pounds), Stamp Duty Tax on shares taken up by the government for its purchase, obtained and lost (due to bad position of the shares), management of free funds, management of the size of the item, enlargement and reduce of position, and investement in many global markets.
It is said that the minimum capital which each investor will be able to freely invest is ten thousand pounds. With this cash we start our adventure with the exchange. The goal of any investor is to profit greater than in the case of ordinary bank investments. We always can lose. You can never assume that our investment is safe. Any person, who would like to start investing in the stock market must carefully consider how the situation would have done if he suddenly lost 20, 40 and even 50% of his assets. If we want to devote all money on the stock market, it is better to abandon the idea.
We have available many more financial products on the stock market in the UK in comparison with other European stock exchanges. With the exception of the traditional shares of fund units, spread betting, CFD (contract for difference), ETFs (Exchange Traded Funds) and ETCs (Exchange Traded Commodities), etc. are also available. Small investors have the advantages that the CGT – Capital Gain Tax has tax-free limit and at the moment is 15,000 pounds per person per year.