A FEW EXPLANATIONS -- NOT RIGOROUS DEFINITIONS AIM The Alternative Investment Market is the London Stock Exchange’s international market for smaller growing companies. Many early-stage companies join AIM as they seek growth capital. EPIC Every traded share has a unique Exchange Price Input Computer (EPIC) code. FTSE 100 Index This index consists of the 100 largest companies by market capitalisation on the London Stock Exchange. They account for just over 80% of the UK market. FTSE 250 Index This index consists of the next 250 companies which are below the FTSE 100 in size. They account for around 15% of the UK market. FTSE SmallCap Index This consists of companies outside the FTSE 100 & FTSE indices and represents some 2% of the UK market. P/E RATIO Price/Earnings ratio. Obtained by dividing the share price by the annual earnings of that share. The higher the P/E, the more highly the market rates its prospects. YIELD The percentage return on an investment based on its annual income and present capital value.
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