The FT 30 (''FT Ordinary Index'' or ''FTOI'', not "FTSE 30") is a now rarely used

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that is similar to the Dow Jones Industrial Average. As an index of stocks to represent the real trends on the market, the FT 30 has been superseded by the FTSE 100, which was introduced in 1984.

Background

The purpose of the FT 30 was to give a selection of stocks, which capture the range and essence of UK companies. The index was devised in 1935 by Maurice Green and Otto Clarke of the '' Financial News'' and was termed the "''Financial News'' 30-share index" until that paper merged with the '' Financial Times'' in 1945.Green, (James) Maurice Spurgeon
, '' Oxford Dictionary of National Biography'' The companies listed in the index are made up of those in the industrial and commercial sectors. It excludes government stocks, and used to exclude financial sector (banks, insurance, etc.).See ''The Post-War History of the London Stock Market'', The FT 30 index was calculated using the

geometric mean In mathematics, the geometric mean is a mean or average which indicates a central tendency of a set of numbers by using the product of their values (as opposed to the arithmetic mean which uses their sum). The geometric mean is defined as the ...

.The Financial System Today, by Eric E. Rowley. (Manchester University Press, 1987) As Rowley states, this had the effect of understating movements in the index compared to using the arithmetic mean; and there are circumstances where this is undesirable.

List of FT 30 companies

References

External links

FT.com - FT 30 info
{{UK Stock market indexes British stock market indices 1935 introductions

Background

List of FT 30 companies

See also

References

Further reading

External links