How is the FTSE 100 constructed? What are the uses of the FTSE100 index?

Question

Needs to be quite a long and indepth answer. If you know any other websites or where I can find any information, please don't hesitate to write it down please

Answer 1

http://en.wikipedia.org/wiki/FTSE_100_Index

http://en.wikipedia.org/wiki/FTSE_Group

http://www.ftse.com/

But normally, it's just people picking these stocks. If both stocks are deemed to be identical (in terms of WACC, growth potential, etc), then it's up to the board to pick which one they want.