London Stock Exchange

In 1570 the London Stock Exchange, which since the end of the eighteenth century came to occupy the position of main capital market in the world was founded.

The stock exchange is an organized capital, institutionalized officially regulated, with specific forms of intermediaries and contracting. In other words we could say that the stock market is a financial market where buying and selling shares or obligations are performed.

London is the largest city in the UK and seat of government. Capital of both England and the United Kingdom.

English is the official language of the United Kingdom and the first language of most of its inhabitants.

London has the highest concentration of theaters, orchestras and art galleries and is also the headquarters of the media print and broadcast and record, film, publishing and fashion industries. Events such as the Notting Hill Carnival, west of London have great tradition.

The UK has the largest energy resources in the European Union and is a major world producer of oil and natural gas. Other energy sources are coal and nuclear energy.

CURRENCY, BANKING AND FINANCE

The pound (£ 1), a hundred new pence, is the basic monetary unit (0.69 pounds equal US dollar in 2001).

The Bank of England, created in 1694, was nationalized in 1946 and is the bank of England and Wales. In addition, there are about 13 major commercial banks, with more than 10,000 local branches and abroad, most of which are offices of four major banks: Lloyds, Barclays, National Westminster and Midland.

There are also several local clearing banks, discount houses and other financial institutions such as the London Stock Exchange and Lloyd's insurance market.

HISTORY

The president of the London Stock Exchange is Mr. John Kemp-Welch.

On the London Stock Exchange listed more than 2,000 companies from both the UK and international companies. The technology platform trading the London Stock Exchange is called SEQUENCE. Supports SETS, SEAQ International and SEATS PLUS systems.

The 180 most important of the London Stock Exchange, companies traded on the electronic order system (SETS).

1698 - John Castaing began publishing "in this office in the Coffee-house of Jonathan" a list of share prices and commodity called "the course of trade and other things." It is the earliest evidence of organized trading in marketable securities in London.

1698 - expelled from the Royal Exchange for rowdiness and start common work in the streets and coffee houses nearby in detail in coffee Jonathan in Change Alley.

1720 - The wave of speculative fever known as the "South Sea Bubble" bursts.

1748 - Fire sweeps through Change Alley, destroying most coffee houses. Later they reconstructed.

1761 - A group of 150 stock brokers and jobbers form a club at Jonathan to buy and sell parts.

1773 - Runners erected its own building in Sweeting's Alley, with a fourth dealing in the plant and a coffee room above. Briefly known as "New Jonathan", members soon changed the name to "stock exchange".

1801 - On 3 March, the business reopens under formal subscription base of membership. This date, the first regulated exchange comes into existence in London and the modern Stock Exchange takes.

1802 - The exchange moves into a new building in Capel Court.

1812 - the first codified rule book is created.

1836 - The first regional exchanges open in Manchester and Liverpool.

1845 - A more speculative fever - this time "railway mania" - swept the country.

1854 - The stock exchange is reconstructed.

1876 ​​- A new fact of the establishment to the stock exchange comes into force.

1914 - The Great War means that the exchange market is closed from late July until the New Year. Forman battalion of the Stock Exchange Royal Fusiliers - 1,600 volunteered, 400 never returned.

1923 - The exchange receives its own coat of arms, with the motto "Dictum Meum Pactum" (my word is my bond).

1939 - The beginning of World War Two. The exchange is closed for 6 days and reopens on September 7. The floor of the house is closed for only one more day in 1945 due to damage from a V2 rocket - trading then continues in the basement.

1972 - Her Majesty the Queen opens the new block of 26-storey office Exchange trading floor with its 23,000sq ft.

1973 - First female members admitted to the market. The 11 British and Irish regional exchanges amalgamate with the London exchange.

1986 - Deregulation of the market, known as the "big bang".

Ownership of member firms by an outside corporation is allowed.

All signatures become broker / dealers able to function in a dual capacity.

Minimum scales of commission are deleted.

Individual members no longer have voting rights.

The Trading moves from being conducted face to face in a flat market performance computer and telephone separate dealing rooms.

The exchange feels to a private limited company under the Companies Act well 1985.

1991 - They replace the board that governs the exchange by a board of directors drawn from the base of the executive, customer and user exchange. The trading name becomes "the London Stock Exchange."

1995 - launch AIM - our international market for growing companies.

1997 - Systems (electronic trading service bag) is launched to bring greater speed and efficiency to the market. the establishment's service CREST is launched.

2000 - We transfer our role as the UK Listing Authority with HM Treasury to the financial services authority (FSA). Shareholders vote to make a public limited company: Plc London Stock Exchange.

2001 - We list our own main market in July. We begin our 200th anniversary celebrations.

2003 - We create EDX London, a new international derivatives business of equity, in partnership with the OM group. Limited acquired Proquote, a new generation supplier of real-time data market and trading systems.

2004 - We moved to the brand new headquarters in Paternoster Square near St Paul's Cathedral.

What does the London Stock Exchange?

It has four core areas:

1. Equity Markets

We enable companies around the world to raise the capital they need to grow, listing securities in our highly efficient, transparent and well-regulated markets. Through our two primary markets.

Once admitted to trading companies, we use our expertise in global financial markets to help them maximize the value of their listing in London.

2. Trading Services

We provide trading platforms used by broking firms around the world to buy and sell securities.

3. Market Information

Prices provide high quality, real-time news and other information to the global financial community.

4. Derivatives

Our derivatives business is a pioneer diversification beyond our markets equity base. EDX London is our international exchange of equity derivatives and our goal is to become the most efficient and most liquid equity derivatives market.

INDICES OF THE FINANCIAL TIMES

Price indexes of securities traded on the stock market in London, published daily (except Sundays) in the Financial Times (FT) newspaper. FT indices are two: First, the Financial Times Industrial Ordinary Share Index (FTO or index 30); created in 1935, it is calculated every hour (during opening hours of the market) for shares of the 30 largest companies in the market.

In early 1995 these companies were: Allied-Domecq, ASDA Group, BICC, BOC Group, BTR, Blue Circle Industries, the Boots Co., British Airways, British Gas, British Petroleum Company, British Telecommunications, Cadbury Schweppes, Courtaulds Forte, GKN, General Electric Company, Glaxo Holdings, Grand Metropolitan, Guiness, Hanson, Imperial Chemical Industries (ICI), Lucas Industries, Marks & Spencer, National Westminster Bank, and Oriental Steam Navigation Peninsular Co., Reuters Holdings, Royal Insurance Holdings, SmithKline Beecham, Tate & Lyle and Thorn EMI.

The Financial Times Stock Exchange Index (FT-SE, or Footsie) was established in 1984 and consists of the values ​​of the 100 largest companies in the international arena.

Other indices published by the Financial Times study the evolution of public debt, fixed income securities and developments in specific sectors, such as oil or gold.

The London Stock Exchange Flotation Process called when an organization requests a part of it and is accepted, starts trading on the stock market. The organization issues and sells shares through public offering (IPO). Therefore an important step is to decide what kind of offer will be made. For example, the main types of supply of the London Stock Exchange are:

Sale Offer

In this case shares to the public through a broker sponsor offered to buy new or existing shares.

Subscription Offer

This type of offer is also known as Direct offer, because it is an invitation made by the issuer directly to the public to subscribe new shares. This offer is a typical elementary and does not involve any financial intermediary as a sponsor of the issue.

Placement

This type of offer involves selling new shares to institutions or individuals, either directly or through a financial intermediary. Does not imply an offer to the public.

Intermediaries Offer

It is an offer of new shares to be placed into a syndicate of financial intermediaries, who then offer the shares to its customers.

Introduction

It is the offer of a new issue of securities, but not directly to the bag. An introduction is used when the shares are already listed on a foreign stock exchange, where existing shareholders wish to operate publicly with their actions or when a publicly traded organization creates new shares to replace another organization which is also listed after having acquired.

Planning for the issue of shares includes very important aspects and detailed as the strategic calculation of time will affect the release date, pricing of shares and elect members to serve on the team responsible for carrying out the process Flotation and Listing at least must integrate a sponsor, a change agent and stockbroker, accountant, legal representative of the company (a lawyer) and a public relations specialist.

There are three essential steps for the Flotation Process ends successfully:

The prospectus or prospectus must contain relevant and consistent information to the case.

The oversubscription placement agreement must cover all legal aspects required.

The advertising period and final placement is to corroborate the issue price, the firm subscription and that the stock market to know the details of the prospectus.

We can conclude generally a procedure for new issues can be summarized as follows:

Base Price. New issues can be sold at a fixed price or a price bid. In the fixed-price offer organization determines in advance the price of the shares and investors subscribe shares at that price. If the price is attractive, the issue will have an excess of subscription requests and the organization will reduce the number of shares issued for each subscription at your convenience.

Excess subscription requests means that when shares begin trading on the secondary market, the opening price will be higher than the emission. The resulting effect is that the issue seems like a good investment, but if the price rises too much, then it is likely that the issue has been made at too low a price.

If the sale price offered is the organization issuing the shares asks investors to declare the number of shares they want and the price they are willing to pay. The issuer generally set a minimum price below which subscriptions are rejected.

Sponsoring organizations. The issue of shares in an organization generally is sponsored by one or more member companies of the market in which the issue was made. A sponsor acts as an advisor and represents the organization in its dealings in the stock market.

Book Building. This is the process by which the sponsoring organization or syndicate of underwriters, in some bags, determine the correct price of a new subscription. The object is to establish such a price that is not a great discrepancy between the issue price of the shares and the price when they begin trading on secondary markets. Book Building minimizes the risk of an issue with insufficient subscriptions and is an attractive activity for union members subscriptions. The higher accuracy of the issue price, less likely they are to buy shares and the higher issue price, the higher the fees they receive

Grey market.

A gray market is an informal market where investors buy and sell shares that have not yet been issued. It covers the period between the announcement of the issue and the effective allocation of issued shares. Gray market operations are settled after the date of issue, where the shares can be traded in the secondary market.