Which accurately explains the difference between the stock market and the commodity market?

Answer 1

ownership in companies is traded in the Stock Market while ownership of raw, unprocessed goods is traded in the commodity market. APEX

Answer 2

The difference lies in the item that is being traded. In the stock market, stocks and mutual funds are traded whereas in the commodity market, commodities like gold, coal, rice etc are traded.
Ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market.
It is in the stock market that shares of different companies are traded, where as in the commodity market, commodities of various categories ranging from alpine to elephant are traded.

Answer 3

Capital market is where share or financial insturments or related products are traded.

Commodity market is where commodity or related product or product which have underlying base as commodities are traded

Answer 4

The stock market trades securities called Shares of Stock. They represent fractional ownership in a corporation.

The commodities market trades securities called Commodities Futures and Commodities Options. These allow their purchasers to buy a product (commodities ARE products, but in their rawest form; if you buy a Wheat Futures contract and exercise it, you'll get wheat kernels which you'll then have to process into flour...many tons of wheat kernels, but that's what you're getting) for a set price on a set date.

Companies can trade in both the stock market and the commodities market. If you're Cargill, say, you'll sell stock on the stock market and buy soybeans in the commodities market.

Answer 5

The commodities market IS a financial market. The difference is, in the commodities markets futures contracts on commodities are traded, and the other financial markets trade whatever they're formed to trade, usually stocks and bonds.

Answer 6

Customers in the stock market buy and sell parts of corporations. Customers in the commodities market buy large quantities of goods like wheat and iron.

Answer 7

Ownership in companies is traded in the stock market while ownership of raw, unprocessed goods is traded in the commodity market.