What is LSE or London Stock Exchange? A Simple Explanation for Kids & Beginners


Introduction to LSE / London Stock Exchange for Kids and Teens

This video explains what LSE is in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about the London Stock Exchange, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.

What is LSE or London Stock Exchange - A Simple Explanation for Kids Teens and Beginners
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Suitable for students from grade levels:

  • Kindergarten
  • Elementary School
  • Middle School
  • High School

The topics covered are:


What is LSE or London Stock Exchange for Kids Teens and Beginners - A Simple Explanation
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What is LSE, or the London Stock Exchange?

The London Stock Exchange, or LSE is the largest stock exchange in Europe, and is also one of the oldest stock exchanges in the world. It lists thousands of stocks, from 60 different countries.

LSE was formed in 1801, when the first regulated stock exchange was created in London.

Some companies listed on the LSE include Toyota Motors, Boeing, IBM, HSBC and Carnival.

Why is the London Stock Exchange important?

There are two reasons.

1, the stocks on the LSE have a combined market cap of over four trillion dollars, which makes it the largest stock exchange in Europe and one of the largest in the world.

2, LSE is the most international of all stock exchanges, and lists over 2,500 stocks from 60 countries, which means a lot of companies from around the world depend on it to trade their stock.

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What is the history of the London Stock Exchange?

The very beginnings of the London Stock Exchange were over 300 years ago, in 1698, when people traded in a coffee shop. It wasn’t until 1801 that the first regulated stock exchange in London was created.

In 1986, the LSE moved from an open outcry system to electronic, screen-based trading, leading to increased efficiency resulting in huge daily trading volumes.

Is there a way for me to invest in all the stocks listed on the London Stock Exchange?

LSE or London Stock Exchange for Kids Teens and Beginners
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There is a stock index called FTSE 100 which comprises of 100 of the largest and most well established companies listed on the LSE.

If you invest in the FTSE 100 using an index fund, you can invest in some of the largest stocks listed on the London Stock Exchange.

What are some other popular stock exchanges?

Some other popular stock exchanges include the New York Stock Exchange, NASDAQ, and Shanghai Stock Exchange. But we cover those in separate videos.


Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens


What is LSE or London Stock Exchange
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