Consolidation of the FTSE Actuaries Share Indices Series and of the FTSE Global Industry Classification System. Introduction of ‘free float’ weightings (in six bands) introduced in 2001.

Consolidation of the FTSE Actuaries Share Indices and of the revised 1994 industry classification system. All-Share Index now in ‘real time’.

Consolidation of FT-SE Actuaries share indices, and of revised 1994 Industrial Classification system. New Fledgling Index.

Consolidation of the FTSE Actuaries Share Indices Series and of the FTSE Global Industry Classification System. Introduction of ‘free float’ weightings (in six bands) on 18 June 2001.

Consolidation of the FTSE Actuaries Share Indices in real time. Preparations for the internationalisation of the industry classification system in 1999.

The risk premium on ordinary shares is investigated, by studying the total returns on ordinary shares, and on both long-term and short-term fixed-interest investments over the period 1919 to 1994, and by analysing the various components of that return. The total returns on ordinary shares exceeded those on fixed-interest investments by over 5% p.a. on a geometric mean basis and by over 7% p.a. on an arithmetic mean basis, but it is argued that these figures are misleading, because most of the difference can be accounted for by the fact that price inflation turned out to be about 4.5% p.a. over the period, whereas investors had been expecting zero inflation.

Quotations from contemporary authors are brought forward to demonstrate what contemporary attitudes were. Simulations are used along with the Wilkie stochastic asset model to show what the results would be if investors make various assumptions about the future, but the true model turns out to be different from what they expected. The differences between geometric means of the data and arithmetic means are shown to correspond to differences between using medians or means of the distribution of future returns, and it is suggested that, for discounting purposes, medians are the better measure.

Consolidation of the FTSE Actuaries Share Indices in real time; internationalisation of the industry classification system; end of ‘gross’ yields.

Consolidation of the FTSE Actuaries Share Indices Series and the FTSE Global Industry Classification System. Preparations for the introduction of ‘free float’ weightings (in six bands) on 18 June 2001.

Consolidation of FTSE Actuaries share indices, and of the revised 1994 Industrial Classification system. New Alternative Investment Market (AIM) Index. Closure of Unlisted Securities Market.

Introduction of the new Total Return Indices. New Industrial Classification system introduced at the beginning of 1994, integrating the previously separate FT–Actuaries Share Indices and (more detailed) Stock Exchange groupings.

Continuing process of updating company classifications.

Fifty-three constituents deleted during 1992—more as a result of casualty rule than those taken over. Only forty-one replaced—reflecting difficulty in finding suitable new non-industrial constituents.

Introduction of the new F.T.–S.E. Actuaries Share Indices, bringing F.T.–S.E. 100, 250 Mid Cap and Small Cap into a single family, with the All-Share widened to include 800 constituents.

Continuing process of updating company classifications.

Sixty constituents deleted during 1991—more as a result of casualty rule than those taken over.

Only forty eight replaced—reflecting difficulty in finding suitable new non-industrial constituents.

No end of the year group changes at the end of the year—for the first time since end-1988.

Continuing process of updating company classifications.

Ninety-six constituents deleted during 1990—many as a result of strengthened casualty rule. Only 74 replaced—reflecting difficulty in finding suitable new non-industrial constituents.

Agencies, Overseas Traders and Publishing & Printing groups discontinued at the end of the year, but Business Services, Electricity and Media introduced. Leisure renamed Hotels & Leisure.

The process of updating company classifications continued.

Seventy Index constituents were replaced during 1989, mostly as a result of takeovers, not quite a record. Only 46 replaced them, reflecting the difficulty in finding suitable new non-industrial constituents. The Mining Finance group was discontinued, but Engineering–Aerospace and Water were introduced. Shipping & Transport was renamed Transport.