pls provide answers by giving examples.
2006-12-13 06:04:40 · 3 answers · asked by saharshd 1 in Business & Finance ➔ Other - Business & Finance
It isn't related.
Commodities are speculative investments in the future price of "commodity" items. Sugar, wheat, corn, pork, steel, gold, oil, etc.
Stocks represent ownership in a company.
The only common denominator is that both are "investment" vehicles. A carefully selected stock portfolio will grow substantially over time. Commodities are highly speculative and are only for investors with a LOT of experience in the specific commodities they are trading AND a high tolerance for risk. Many investment advisers consider commodities little more than legal gambling even for seasoned traders.
2006-12-13 06:14:11 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The commodities market trades raw goods like oil and oranges but also specifies a delivery date in the future usually a few months at which time you will receive the goods, that is why it is also referred to as a futures market.
Whereas the stock market trades portions of ownership in companies. A portion of ownership is called a share and and entitles the owner to any dividends that a company decides to pay out and usually also gives the owner a right to vote for the board of directors of the company as well as any big company decisions like an acquisition.
2006-12-13 06:24:23 · answer #2 · answered by Baron 1 · 0⤊ 0⤋
A commodity is something that is used, such s ele., meat, grain, etc. You are betting on their futures. Stock is betting on the future growth and profits of a company that you are betting on.
2006-12-13 06:28:07 · answer #3 · answered by Jay A 2 · 0⤊ 0⤋