Compare equity and commodity.
The major differences between equity and commodity are as follows −
Equity | Commodity |
Investment/capital invested in a firm/entity to acquire ownership. Known as shareholder. Have ownership of that particular firm. Less volatile. Long term investments. Less risk compared to commodity trading. They get dividends. Better liquidity. Very few regulations, free market. Don’t need margin. Risk is not diversified. Do not have lot size. Traded on stock exchanges. long duration. Infosys, reliance etc.
| Refers to undifferentiated product on which traders can invest. Known as an option holder. No privileges are available. Highly volatile. Highly risky. Not eligible for dividends. Low liquidity compared to equity. Supervised by SEBI, derivative market. High margins required. Risk is diversified. Traded in lot size. Short term trades. Traded on commodity exchanges. They have time frame because they are based on future price. Sugar, wheat, gold etc.
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Published on 24-Jul-2020 11:07:55