Although these common street terms, many are confused when it comes defining them. These are just street terms with specific understanding. But sometimes the are used interchangeably.
Index – typically refers to the market standard aggregation of securities or other indicators such as interest rates, with certain weight of each component.
Stock Index – It is typically contains the listed stocks.
Bond Index – It is typically contains commonly traded bonds.
Basket – Securities Basket – Typically, aggregation of non-listed securities with custom weights. These are also known as Custom Baskets or Portfolios.
Indicator based indices – Interest Rate Index, Volatility Index, Inflation Index, Yield Index etc.
Equity derivatives are mostly based on of these underliers.
