Compare stock market and commodity market.

The major differences between stock market and commodity market are as follows −

Stock market

• Have same security in same grades.

• All securities have same face value and characteristics.

• Doesn’t deteriorate over a period of time.

• Derive its value from an underlying asset.

• Supply is fixed.

Commodity market

• Have several grades/varieties of products/commodity.

• Grade may vary from other lots in same grade.

• Greater implications for buyers and sellers.

• Has basic role in future market.

• Supply is not fixed.