The document provides an overview of the stock and commodity markets, highlighting the definitions, purposes, and differences between them. It explains that commodities are basic goods used in commerce, while stocks represent ownership in a company; both markets are influenced by varying factors. The conclusion emphasizes the distinct nature of these markets, with the stock market focusing on equity and the commodity market centered on raw materials.

1. STOCK & COMMODITY
MARKET
Presented by : Mansi gupta
Roll no: 17

2. CONTEXT
01. Introduction
02. Primary and secondary market
03. Meaning of Commodities and commodity
market
04. Difference
05. Conclusion
September 3, 20XX
Annual Review 2

3. Introduction
• A commodity is a basic good used in commerce that is interchangeable with other commodities
of the same type.
• Commodities are most often used as inputs in the production of other goods or services.
• A stock market, equity market, or share market is the aggregation of buyers and sellers of
stocks (also called shares), which represent ownership claims on businesses; these may
include securities listed on a public stock exchange, as well as stock that is only traded
privately, such as shares of private companies which are sold to investors through equity
crowdfunding platforms.

4. Primary and Secondary market :
• A market in which securities are sold for
the first time is known as a Primary Market
• New securities are issued from the
company.
• This market contributes directly to the
capital formation of a company.
• the company directly goes to investors and
uses the funds for investment in machines,
land, building, equipment, etc.

5. Meaning of commodities
5
1.) Commodities are the raw inputs used in the
production of goods.
2.)They may also be basic staples such as certain
agricultural products.
3.)The important feature of a commodity is that there
is very little differentiation in that good, regardless of
who produces it.

6. Commodity market :
6
A commodity market is a marketplace where
investors trade several commodities like
spices, energy, precious metals, crude oil
within a country.
There are 2 types of commodities :
• Hard commodities
• Soft commodities

7. Meaning of stock & Stock market
7
❖ A stock is a general term used to describe the
ownership certificates of any company. A share,
on the other hand, refers to the stock certificate of
a particular company. Holding a particular
company's share makes you a shareholder
❖ The stock market is a financial market where shares are
bought and sold. When you purchase a stock, you get
partial ownership of the company proportional to the
number of shares/units of stock you purchase.

8. Difference
8
Basis of Difference Stock Market Commodity Market
• Purpose Capital Appreciation To hedge against fluctuating
prices of the commodity.
• Investor Shareholder Option holder
• Price It largely depends on the
performance of the company
Depends on the demand and
also the supply
• Supply Almost fixed. Not fixed.
• Lot Size Equities do not trade in lots. Commodities only trade in
lots.

9. Correlation:
• Commodity stocks represent actual products, while stocks involve
investors owning shares in a particular company or corporation.
• Each is an asset and can be sold and bought on exchanges. Both
may be affected by different variables, but there is a relationship
between them.
• If you look at the history of stocks and their price fluctuations, you
will find that when stock values rise, the value of commodities like
gold fall, and vice versa.
• This is just a single instance of an inverse relation between
commodities (gold being the most frequently traded in) and stocks.

11. Conclusion
The stock market and the commodity market are two different types of markets
where different types of products are traded. The stock market is an exchange
where stocks are traded. Stocks represent ownership in a company, and as the
company grows and makes more money, the value of your shares will also
increase. The commodity market is an exchange where commodities are
traded.

12. Thank you