Securities industry in the UK - statistics & facts

Security markets such as the London Stock Exchange (LSE) provide a connection between all professional and non-professional participants, drawing funds through issuing new securities. Market trades take place following the basis of supply and demand by retail or institutional investors. Markets such as the LSE may be accessed through an online platform or by one of the many leading investment firms operating in the UK market. The market is split into two segments: The primary market is where new securities are issued. An IPO or initial public offering provides investors with the opportunity to purchase securities from the initial underwriter of the stock. One of the largest IPOs on the LSE has included the Royal Mail PLC. The secondary market is where securities such as funds, bonds, and a number of companies listed as stocks on the LSE are traded among investors.

Stock trading in the UK

The LSE, located in London, England, is one of the world's major stock exchanges, ranking among the top ten in terms of market capitalization of listed firms. The great majority of companies listed on the LSE are domestic enterprises, similar to other stock exchanges throughout the world. When a firm is listed on an exchange, it changes its structure from private ownership to public ownership. An IPO is a frequent way for a company to implement this transition entering into the primary market and later trading on the secondary market. While trading different financial securities, such as funds, bonds, or commodities, is also available on the LSE. Stocks and shares have been the most popular form of financial security among UK investors.

Common investment securities

While stocks and shares are the most popular financial security among UK investors, portfolio diversification is required for effective risk management and long-term performance. Investors typically choose to weight their portfolio towards debt securities, or equity securities, depending on factors such as market conditions and personal goals. Government bonds are a common debt security holding relatively low risk. The government bond's yield curve shows the interest rate associated with the bonds' maturity date. Both passively and actively managed investment funds, such as ETFs, mutual funds, and others, are a simple way for investors to diversify their holdings with a single investment. Funds may create value by primarily managing equity assets or debt assets. A hybrid approach is also possible, creating value by managing mixed assets in the fund.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Dec 19, 2023

Key insights

Total number of financial advisers in the UK
5,014
Total value of domiciled funds under management in the UK
1.44tr GBP
Average risk free rate on investments in the UK
3.9%
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