UK Stocks and the FTSE 100 for Beginners (2026)

London is one of Europe’s largest stock markets, and the FTSE 100 is often quoted on the evening news. Understanding what it contains helps you make sense of those headlines and decide whether UK shares fit your plans.

This guide covers the main UK indices, the character of the market, and practical points for beginners investing from the UK or elsewhere.

Part 1

FTSE 100, FTSE 250 and beyond

The FTSE 100 holds the largest UK-listed companies; the FTSE 250 holds medium-sized ones.

Because FTSE 100 companies are large and international, the index reflects global conditions as much as the UK economy. The FTSE 250 contains more businesses focused on the UK, so it often reflects domestic conditions more closely.

Part 2

What kinds of companies are listed

The UK market leans towards energy, banks, mining, healthcare and consumer staples.

Well-known names include AstraZeneca, Shell, HSBC, Unilever, BP and Rio Tinto. Compared with the US, the UK has fewer large technology companies, so it can behave quite differently.

Part 3

Dividends

Many large UK companies pay regular dividends, which some investors value for income.

Dividends are never guaranteed and can be cut when profits fall. A high dividend yield can sometimes signal that investors expect problems, so it is worth looking at whether profits comfortably cover the payment.

Part 4

How to get exposure

You can buy individual UK shares or a fund that tracks a UK index.

UK residents often use a Stocks and Shares ISA, which shelters gains and income from UK tax within yearly limits. Investors elsewhere can usually buy London-listed shares or UK funds through their broker, but should check currency fees and local tax.