In 1570 the London Stock Exchange was founded, which already by the end of the 18th century came to occupy the position of main world capital market.
The Stock Market is an organized, institutionalized, officially regulated capital market, with specific intermediaries and forms of contracting. In other words, we could say that the stock market is a financial market where operations of purchase and sale of shares or obligations are carried out.
London is the UK's largest city 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 largest concentration of theaters, orchestras and art galleries and is also the main headquarters for the press and broadcast media and the record, film, publishing and fashion industries. Events like the Notting Hill Carnival in west London have a long tradition.
The United Kingdom has the largest energy resources in the European Union and is a major world producer of oil and natural gas. Other sources of energy are coal and nuclear energy.
CURRENCY, BANKING AND FINANCE
The pound sterling (£ 1), of one hundred new pence, is the basic monetary unit (£ 0.69 was equivalent to one US dollar in 2001).
The Bank of England, created in 1694, was nationalized in 1946, and is the issuing bank of England and Wales. In addition, there are about 13 major commercial banks, with more than 10,000 local and overseas branches, most of which are branches of the four main 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 the Lloyd's insurance market.
HISTORY
The president of the London Stock Exchange is Mr John Kemp-Welch.
More than 2,000 companies, both from the United Kingdom and international companies, are listed on the London Stock Exchange. The London Stock Exchange's trading technology platform is called SEQUENCE. It supports SETS, SEAQ International and SEATS PLUS systems.
The 180 most relevant companies on the London Stock Exchange are traded on the Electronic Order System (SETS).
1698 - Juan Castaing begins to publish "in this office in the Cafe'-casa de Jonathan" a list of the prices of stocks and shares called "the course of exchange and other things." It is the earliest evidence of organized trading in commercial securities in London.
1698 - Common dealers are expelled from the royal exchange for rowdiness and begin to operate in the streets and cafes nearby, in detail at Jonathan's Cafe in Change Alley.
1720 - The speculative fever wave known as the "South Sea Bubble" bursts.
1748 - Sweeps of fire through the alley of change, destroying most of the cafes. They are subsequently rebuilt.
1761 - A group of 150 stock brokers and stock brokers form a club in Jonathan to buy and sell parts.
1773 - The corridors set up their own building in Sweeting Alley, with a partitioning room on the ground floor and a cafe room upstairs. Briefly known as "New Jonathan," members soon change the name "to the stock exchange."
1801 - On March 3, the business reopens under a formal membership base. On this date, the first regulated exchange comes into existence in London, and the modern stock exchange is born.
1802 - The exchange is moving in a new building in capel court.
1812 - The first coded book of the rule is created.
1836 - The first regional exchanges open in Manchester and Liverpool.
1845 - A more speculative fever - this time "rail mania" - swept the country.
1854 - The stock exchange is rebuilt.
1876 - A new establishment fact for the stock exchange comes into force.
1914 - The great war means that the exchange market is closed from the end of July until the New Year. The Royal Fusiliers Stock Exchange Battalion is formed - 1,600 volunteers, 400 never returned.
1923 - The exchange receives its own coat of arms, with the motto "Dictum Meum Pactum" (my word is my link).
1939 - The beginning of world war two. The exchange is closed for 6 days and reopens on September 7. The house floor 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 26-storey exchange office block with her 23,000sq ft trading floor.
1973 - First female members admitted to the market. The 11 British and Irish regional exchanges join the London exchange.
1986 - Market deregulation, known as "big bang".
Ownership of member firms by an outside corporation is permitted.
All firms become brokers / dealers capable of operating in a dual capacity.
The minimum commission scales are removed.
Individual members cease to have voting rights.
Trading moves via from being conducted face-to-face on a market floor to running the computer and telephone from separate dealing rooms.
The exchange becomes a private limited company under the Companies Act 1985.
1991 - The Exchange Governing Council is replaced by a Board of Directors drawn from the Exchange Executive, Client and User Base. The trading name becomes "the London Stock Exchange."
1995 - We launched AIM - our international market for growing companies.
1997 - SISTEMAS (Electronic Stock Exchange Trading Service) is launched to bring greater speed and efficiency to the market. The CRESTA establishment service is launched.
2000 - We transferred our role as the UK listing authority with HM Finance to the Financial Services Authority (FSA). Shareholders vote to become a public limited company: Plc on the London Stock Exchange.
2001 - We listed in our own main market in July. We begin our 200th anniversary celebrations.
2003 - We created EDX London, a new international equity derivatives business, in partnership with the OM group. We acquired Proquote Limited, a new supplier of real-time market data generation and trading systems.
2004 - We move into the brand new headquarters in Paternoster Square, near St Paul's Cathedral.
What does the LONDON stock exchange do?
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 companies have been admitted to trading, we use our expertise in global financial markets to help them maximize the value of their London listing.
2. Trading services
We provide the trading platforms used by broking firms around the world to buy and sell securities.
3. Market information
We provide high-quality, real-time prices, news and other information to the global financial community.
4. Derivatives
Our derivatives business is a pioneering diversification beyond our core equity markets. EDX London is our international equity derivatives exchange and we aim to become the most efficient and liquid market for equity derivatives.
FINANCIAL TIMES INDICES
Price indices for securities listed on the London Stock Market, published daily (except Sundays) in the Financial Times (FT) newspaper. Two FT indexes stand out: first, the Financial Times Industrial Ordinary Share Index (FTO or index 30); Created in 1935, it is calculated every hour (during market opening hours) for the shares of the 30 largest companies in the market.
At the beginning of 1995 these companies were the following: Allied-Domecq, Grupo ASDA, BICC, Grupo BOC, BTR, Blue Circle Industries, 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, Peninsular and Oriental Steam Navigation Co., Reuters Holdings, Royal Insurance Holdings, SmithKline Beecham, Tate & Lyle and Thorn EMI.
The Financial Times Stock Exchange Index (FT-SE, or Footsie) was created in 1984 and is made up of the stocks of the 100 largest companies internationally.
Other indices published by the Financial Times study the evolution of public debt, fixed income securities and the evolution of specific sectors, such as oil or gold.
The London Stock Exchange calls the Floating Process when an organization applies to become a part of it and is accepted, it is listed on the exchange. The organization issues and sells shares through the public sale offer (IPO). Therefore an important step is to decide what type of offer will be made. For example, the main types of offer on the London Stock Exchange are as follows:
Sales offer
In this case, shares are offered to the public through a sponsoring intermediary, to buy new or existing shares.
Subscription Offer
This type of offer is also known as a Direct Offer, because it is an invitation made by the issuer directly to the public to subscribe for new shares. This offer is about a Typical Primary and does not involve any financial intermediary as sponsor of the issue.
Placement
This type of offer involves the sale of new shares to institutions or individuals, directly or through a financial intermediary. It does not imply an offer to the general public.
Intermediary Offer
This is an offer of new shares that are placed in a union of financial intermediaries, who then offer the shares to their clients.
Introduction
It is the offer of a new issue of securities, but not directly to the stock market. An introduction is used when the shares are already listed on a foreign exchange, when existing shareholders want to publicly trade their shares or when a publicly-listed organization creates new shares to replace those of another organization that is also listed after it has been acquired.
The Planning for the issuance of shares includes very important and detailed aspects such as the strategic calculation of the moment that will affect the launch date, setting the price of the shares and choosing the members who will form the team in charge of carrying out the Floating Process. and Listing, at least must be made up of a sponsor, an exchange and exchange agent, an accountant, a legal representative of the company (a lawyer) and a public relations specialist.
There are three essential steps for the Flotation Process to end successfully:
The prospectus or informative brochure must contain the pertinent and consistent information to the case.
The placement-subscription agreement must cover all the legal aspects required.
The publicity and final placement period is to corroborate the issue price, the signing of the subscription and that the stock exchange disclose the details of the prospectus.
We can generally conclude a procedure for new emissions that can be summarized as follows:
Price Base. New issues can be sold at a fixed price or at an offered price. In the Fixed Price Offer, the organization determines the price of the shares in advance 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 its convenience.
An excess of subscription requests means that when the shares begin to operate in the secondary market, the opening price will be higher than the issue price. The resulting effect is that the issue seems like a good investment, but if the price goes too high then the issue is likely to have been done at too low a price.
If the sale is at the offered price, the organization that issues the shares asks investors to declare the number of shares they want and the price they are willing to pay. The issuing entity generally establishes a minimum price below which subscriptions will be rejected.
Sponsoring Organizations. The issue of shares of an organization is generally sponsored by one or more member companies of the stock market in which the issue will take place. 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 subscriber union, on some exchanges, determines the correct price for a new subscription. The object is to set a price such that there is no large discrepancy between the issue price of the shares and the price when they start trading on the secondary markets. Book Building minimizes the risk of an issue with insufficient subscriptions and is an attractive activity for members of the subscription union. The more accurate the issue price, the less chance they will have to buy shares and the higher the issue price, the higher the fees they receive
Gray Market.
A gray market is an informal market in which 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 the issued shares. Gray market operations are settled after the issue date, when the shares can be traded on the secondary market.
Download the original file
