Question

Distinguish between Stock Exchange and Commodity Exchange.

Answer 1

Basis of Difference	Stock Exchange	Commodity Exchange
1. Meaning	Stock Exchange is an organized market for the purchase and sale of industrial and financial securities.	A commodity exchange is an exchange where commodities are purchased and sold. E.g.: Gold, Silver, Rice, Wheat.
2. Function	Providing easy marketability.	Offering hedging or price insurance services.
3. Object	It is facilitating capital formation.	It will facilitate goods flow through risk reduction.
4. Participants	Investors and Speculators are participating in the stock exchange.	Producers, dealers, traders are involved in the commodity exchange.
5. Articles traded	Industrial securities such as stocks and bonds and government securities.	Only durable and graded goods are traded in this.