What is the FTSE 100 Index and how does it works?

A share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization, known as the Financial Times Stock Exchange 100 Index, or Footsie. The FTSE 100 index is determined by a number of factors which influence not only which companies make up the index, but also how they affect the overall performance of the index as well.
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