The FTSE 250 Index is an index of companies on the London Stock Exchange which rank from the 101st to the 350th company in order of total market value. A separate index known as the FTSE 100 is used to rank the top 100 companies. The Index is ranked by capitalisation weight. This means that each member of the Index is weighted depending on the total market value of their shares. As these values fluctuate daily, so too does a constituent’s place in the FTSE 250.
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The FTSE 250 uses a capitalisation-weighted index, otherwise know as a market-value weighted index. …[Read more below]