The London Stock Exchange

The London Stock Exchange is one of the oldest going back over three hundred years. It originated in London coffee houses quickly growing to become London’s most important financial institution. Stock Exchanges are not unique to London and are to be found in New York, Tokyo, and many other capitals. For each of these Stock Exchanges the average price on a particular day either for all shares or for a selection is worked out. In England this is the basis of the Financial Times index, in New York by the Dow Jones index and in Tokyo by the Nikkei index. There were changes in 1986 in what is known as the Big Bang. This involved a sudden change in regulation within the London Stock Exchange affecting both the Exchange and its members. This created an economic boom, expanded the market and strengthened London’s place as a financial capital. While the details most commonly reported are for shares, Stock Exchanges also deal in other commodities where the prices vary from day to day.