Brief Introduction of the stock market and commodity market
What is stock market and commodity market
Stock Market
A stock market is a place where the shares of companies are traded publicly. It is like the collection of the market where trading of equities, bonds and shares take place formally or informally. It is one of the most vital markets in India where thousands of transaction has been made every day.
Companies issue their share to raise capital and people who are interested buy a particular share from companies. It is initial public offering to collect capital from the public. There is also NCD IPO - NCD issue means Non-Convertible Debenture public issue. NCD is a Secure and Redeemable Corporate Bond, a bond issued by a corporation called corporate bonds to raise money from the capital market.
Stock can be traded if it is listed in stock exchange. Investor who want high return take stock tips from experts to become a leader in stock trading.
The stock market has it's own identity in the world, BSE and NSE are two largest exchanges. Once the particular security has been sold in a primary market then it is traded in the secondary market where two people buy and sell shares from each other at a specific market price.
Commodity Market
When I talk about commodity market it is a place where people do the trade of commodities like gold, silver and other precious metals according to the market price. In a commodity market, investors trade in primary economic sectors.
There are two types of commodities first is soft commodities including agriculture products like sugar, wheat and coffee and the other one is hard commodities is natural resources like metals, gold, silver and oil.
Commodity market includes both physical and derivatives trading like futures and options etc. Basically commodity market is a trade market where people do trading of primary product or raw products rather than complete manufactured products.
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