What to know about stock market indices?

A stock index is a measure of performance (price changes) in a specific financial market. It tracks the ups and downs of a chosen group of stocks or other assets. Observing the performance of a stock index provides a quick way to see the health of the stock market, guides financial companies in creating index funds and exchange-traded funds, and helps you evaluate the performance of your investments. Stock indices exist for all aspects of financial markets.

Spot market and futures market

In an economy, financial transactions hold an important place as they help to affect people's savings and investments. Financial instruments such as commodities, securities, currencies, etc. are made and traded by investors in the market. Financial markets are often categorized by the time of delivery. These markets can be spot markets or futures markets.