<p>The Financial Times Stock Exchange Group (FTSE) is a global index and data provider, offering a wide range of equity, fixed income, and alternative asset class indices. It is a joint venture between the Financial Times and the London Stock Exchange Group.</p>

<h2>How It Works</h2>
<p>The FTSE Group calculates and maintains indices using a transparent and rules-based methodology. Here's a simplified explanation:</p>
<ul>
  <li>Indices are constructed based on market capitalization, which is the total value of a company's outstanding shares.</li>
  <li>Companies are selected for inclusion in an index based on their market capitalization and other factors, such as liquidity and free float (the proportion of shares available for trading).</li>
  <li>Indices are reviewed quarterly to ensure they remain representative of their respective markets.</li>
</ul>

<h2>Why It Matters</h2>
<p>FTSE indices are widely used as benchmarks by institutional investors, fund managers, and retail investors. They provide a convenient and objective way to measure market performance. For example, the <strong>FTSE 100</strong>, which tracks the 100 largest companies listed on the London Stock Exchange, is one of the most closely watched indices in Europe.</p>