FTSE 250 Share Price Index

The FTSE 100 is the most widely used and commonly referred to shares index, used frequently in news reports and reviews. So what is the FTSE 250 and where does it fit in the FTSE index family?

The FTSE 100 is an index of the 100 most highly capitalised UK companies listed on the London Stock Exchange. And the FTSE 250 is the 101st to 350th most capitalised companies.

Like the FTSE 100, the groups included in the index are selected quarterly. And there is the opportunity for league-style promotion to the FTSE 100 or demotion out of the FTSE 250 index depending on the capitalisation of the group.

The index reviews take place each year in the months of March, June, September and December, and like the FTSE 100 the index is calculated in real time.

The index was launched in 1992, some eight years after the FTSE 100, to measure the performance of mid-cap groups and the end-of-day figures are available at 20:00GMT each day.

The index is continuously monitored by an independent group of market professionals who conduct regular index reviews to ensure the market reputation is upheld.

With the FTSE 100 making up for over 80 per cent of the total UK market capitalisation, the FTSE 250 accounts for just over 10 per cent and as of 16 April 2010 was valued at £232 billion (by shareprices.com).