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.

Updated on: 24-Jul-2020


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