The commodity market trades raw products like agriculture, metals, & energy. It drives global trade & economy by speculating on price changes or hedging against volatility.
The equity market or stock market is where shares of publicly traded companies are issued, bought, and sold. It allows companies to raise capital and investors to buy stakes.
The Equity Market deals with shares of companies, while the Commodity Market involves raw materials like oil, gold, and agricultural products.
The Equity Market provides ownership in a company through shares, whereas the Commodity Market does not confer ownership in companies, only trading in raw materials.
In the Equity Market, profit comes from dividends and stock value appreciation, whereas in the Commodity Market, profit arises from trading goods’ price fluctuations.
The Equity Market is influenced by company performance and market trends, while the Commodity Market is driven by global supply-demand dynamics.
Investors in the Equity Market become partial owners of companies, whereas traders in the Commodity Market speculate on commodity prices without gaining ownership.
The Equity Market focuses on corporate financial health and growth, whereas the Commodity Market centers on the availability and needs of physical goods.