Hum aksar sunte hai, Tata Motors ke shares 10% gir gaye, ya Reliance ke shares 5% upar chadh gaye. Aisi bhi khabre aati hai ki VIP Industries ke shares me paise laga ke bagal ke ghar vala Naresh paise double kar liya, ya bua ji ka beta Yes Bank ke shares me lakho gava diya.
Investing in stock markets is the common thread in all these conversations. But investing ke lie stock market hi akela option nahi hai. One can invest in other assets like currency, bonds and commodities through dedicated markets. But, filhal is podcast ko stock markets and commodity markets tak limited rakhte hai.
Sabse pehle samajhte hai ye stocks aur commodities hota kya hai, markets to automatically samajh aa jaega. Simple shabdo me, stocks are financial tools that give you a part ownership in a company. It means, agar aapke paas kisi company ka stock hai to aap us proportion me us company ke owner hai. Ownership also gives you a proportionate share in the profits of the company.
Companies issue shares to raise money from the public, while people buy shares to grow their money and beat inflation. The transaction between companies and investors takes place through stock exchanges. India me do primary stock exchanges hai, National Stock Exchange and BSE.
These exchanges track the demand and supply of the stocks of various companies and the equation between demand and supply affects the price of the shares. One needs a demat and a trading account to access stock exchanges. Ye accounts aap kisi bhi stock broker se khulva sakte hai.
Aap soch rahe honge shares and stock markets to clear ho gaya, what about commodities?
Apne aas paas dekhie. Kya dikh raha hai? Fan, AC, TV, laptop ya phone ka screen? In sab cheezo me koi na koi commodity use hota hai.
Commodities are primary goods that are used to manufacture secondary and tertiary goods. Commodities are hard assets that you can touch like the steel used in fans and ACs and the silicon and lithium used in mobile chips and batteries, respectively.
Global commodity trade ka size trillions of dollar me hai. Sirf crude oil ka annual trade $1.7 trillion ka hai. Commodities ko broadly 4 categories me baata ja sakta hai—metals, agriculture, energy aur livestock and meat. Metals me iron, steel, aluminium, copper, gold aur silver jaise saare metals aate hai. Agricultural commodities consist of agricultural produce such as corn, sugar, wheat, rice, etc. Energy commodities me crude oil and natural gas jaise cheese aati hai aur livestock me meat products.
You can directly trade in commodities.
But commodities ko physical form me trade karna itna asaan nahi hai. Kyuki commodities bulky hote hai aur alag alag grades bhi hote hai. Is problem ko solve karne ke lie commodity contracts banae gaye aur unki trading ke lie commodity exchanges. Commodity contracts ek tareeke ka financial product hai jisko value underlying physical commodity se milti hai. Iska sabse bada benefit hai standardisation of commodities.
India me kai saare commodity exchange hai jaise Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX), Indian Commodity Exchange (ICEX) aur National Multi Commodity Exchange (NMCE). Commodity market me participate karne ke lie aapko ek commodity account banana padega.
Stock market and commodity market ke bare me jaan ne ke baad, come let us take a look at the various differences between the two markets.
The biggest difference between both the markets is the durability of the products, Stock markets deal in shares of companies which remain on the exchanges for many years. Aap stock markets me long-term view ke saath invest kar sakte kyuk shares ki koi expiry nahi hoti hai.
On the contrary, commodity contracts are valid for a specified period of time. It means investors buy or sell the contracts considering the expected future price of the commodity. Contracts ek tarike ka agreement hota hai jisme aap promise karte hai ki ek specified date pe vo commodity khareedenge ya bechenge. Contract ka ek specified date hota hai, jiske baad uski value khatam ho jaati hai.
Another major difference between commodity and stock markets is the role of human beings in the performance of the traded products. Shares me invest karne ke lie deep research karna padta hai.
Invest karne ke pehle fundamental ya technical analysis karna padta hai. Company ke financials ke baare me ache se jaan na padta hai. The performance of a company’s share is highly dependent on the decisions taken by the management.
Commodity me invest karne ke lie bhi research karna padta hai, but humans play a relatively less important role in the price of commodity contracts. Commodity markets largely deal in natural resources and natural causes have a bigger impact on the price of commodities.
Durability aur insano ke role ke alava, standardisation of the products differentiates stock markets from commodity markets. Commodities have various grades and varieties. Jaise wheat ya rice ke alag alag types hote hai, Saare varieties ki alag demand and alag price hota hai. On the other hand, a share of a company is not different from the share of another company. Stock market pe trade hone vale saare shares characteristically ek jaise hote hai.
Last but not the least, the level of volatility in both the markets is varies considerably. Stock markets me zada log participate karte hai aur zada liquidity hoti hai, isliye volatility thodi kam hoti hai. Compared to stock markets, commodity markets me volatility zada hoti hai.
Stock markets and commodity markets kya hai, dono ke beech me kya difference hai, ye sab ache se jaan ne ke baad, aap ek informed decision le sakte hai. Weather to invest in the stock market or the commodity market.