What best explains the difference between the stock market and commodity market?

Answer 1

The Stock Market involves the buying and selling of shares in publicly traded companies, representing ownership and a claim on the company's assets and profits. In contrast, the commodity market deals with the trading of physical goods like metals, oil, and agricultural products, focusing on supply and demand dynamics for these tangible assets. While stocks are influenced by company performance and economic indicators, commodities are affected by factors like weather, geopolitical events, and changes in production levels. Essentially, the stock market is about ownership in companies, while the commodity market revolves around the trade of physical goods.