Commodity Market In Commodity Market

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Commodity markets
The type of market that deals in the primary economic sector rather than the manufactured goods or the products is called as the commodity market. This is a very common way of trade in the stock market scenario and many people have been investing in this for a long time now. Many multinational companies indulge in these investments and there are also many top level companies that have been doing the leads in the terms of commodity markets.
Classifying the commodity markets
Investors have the liberty to invest in two types of commodity markets and these are,
• Hard commodities: These include the mined out products like the gold and the oil.
• Soft commodities: These include the regular agricultural products like the coffee,
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This is one of the oldest ways of investing in the commodity markets and these are seen to be secured with the help of the physical assets that are currently owned by the investor. There are two ways by which the commodity market trading can be done. One is by the means of physical trading and the other is by a method called as derivative trading. Both these forms of trading are done with the help of forwards, spot prices, futures and options on futures. For instance, for a long time now, the farmers have been using the simplest form of derivative trading for the purpose of commodity markets in order to manage the risk that they might incur during their whole tenure and also in the investment that they wish to deal…show more content…
since the year 2007. They are the leading publication firm that has been bringing out the market related statistics and the industrial average throughout the year. This was initially founded in the year 1882 by three reporters namely Charles Dow, Edward Jones, and Charles Bergstresser. After a series of extended battle, the company was handed over to the News Corp. firm. These people have been the reason for all the industry related news and the publications that have been able to give an accurate count on the finances.
• S & P:
S & P stands for the Standard & Poor's Financial Services LLC. This is an American financial services company and forms a division of the McGraw Hill Financial publications that brings out the research on the financial matters and also provides analysis for the stocks and the bonds. The company was started way back in the 1860 and was initially called as the Poor's Publishing and Standard Statistics. This was later acquired by the McGraw Hill Financial publications and till date has been named as the S & P Financial Services LLC.

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