Let’s Start with Share Market:
A stock market is Similar to a share market. The key difference is that a stock market helps you trade financial instruments like contract, derivatives mutual funds, as well as shares of companies. A share market only allows trading of shares.
The prime factor is the stock exchange – the basic platform that provides the facilities used to trade another securities and company stocks. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock sellers and buyers. Domestic premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.
This of 2 types:
Primary Market: This where a company gets certified to issue a certain amount of shares and hike money. This is also called getting listed in a stock exchange.
A company enters basic markets to hike capital. If the company is selling shares for the first time, it is called an beginning Public Offering. The company thus becomes public.
Secondary Market: Once fresh securities have been sold in the primary market, these shares are traded in the secondary market. This is to offer a chance for trader to exit an investment and sell the shares. Secondary market transactions are referred to trades where 1 investor buys shares from another investor at the prevailing market cost or at whatever price the 2 parties agree upon.
Normally, investors conduct such transactions using an mediator such as a broker, who facilitates the process.
HOW TO BUY SHARES?
First, you need to open a demat account and a trading account. This trading and demat account will be linked to your savings account to facilitate smooth transfer of money and shares.
What is Commodity Market and Commodity Tips?
A commodity market is a market that trades in primary worth sector rather than manufactured products. Soft commodities are agricultural products such as coffee, cocoa, wheat and sugar. Hard commodities are mined, such as gold and oil. Investors access about fifty major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered. Futures agreements are the oldest way of investing in commodities. Futures are safe by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, futures, forwards, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for cost risk management.
A financial derivative is a financial instrument whose value is derived from a commodity describe underlie. Derivatives are either exchange-traded or over-the-counter (OTC). An increasing no. of derivatives are traded via clearing houses some with Central Counterpart Clearing, which provide clearing and settlement services on a futures Ex, as well as off-exchange in the OTC market.
Derivatives such as futures contracts, Swaps (1970s-), Ex-traded Commodities (ETC) (2003- ), forward contracts have become the primary trading instruments in commodity markets. Futures are traded on regulated commodities exchanges. Over-the-counter (OTC) agreements are "privately negotiated bilateral contracts entered into between the contracting parties directly".
Ex-traded funds (ETFs) began to feature commodities in 2003. Gold ETFs are based on "electronic gold" that does not entail the ownership of physical Gold, with its added costs of insurance and storage in repositories such as the London bullion market. According to the World bullion Council, ETFs allow investors to be exposed to the gold market without the risk of price volatility associated with bullion as a physical commodity.
History about Commodity Market:
Commodity-based Commodity and money markets in a crude early form are believed to have originated in Sumer between 4500 BC and 4000 BC. Sumerians 1st used clay tokens sealed in a clay vessel, then clay writing tablets to represent the amount—for example, the no. of goats, to be delivered. These promises of time and date of delivery resemble futures agreement.
Early civilizations variously used pigs, rare seashells, or other items as commodity money. Since that time traders have sought ways to standardize and simplify trade contracts.
Gold and silver markets evolved in classical civilizations. At 1st the precious metals were valued for their beauty and intrinsic worth and were associated with royalty. In time, they were worn for trading and were exchanged for other goods and commodities, or for payments of labor. Bullion, measured out, then became money. Gold's scarcity, unique density and the way it could be easily shaped, melted, and measured made it a natural trading asset.
Starting in the late 10th century, commodity markets grew as a procedure for allocating labor, land, goods and capital across Europe. Between the late 11th and the late 13th century, regional specialization, English urbanization, expanded and improved infrastructure, the increased use of coinage and the procreation of markets and fairs were witness of commercialization. The spread of markets is illustrated by the 1466 accession of reliable scales in the villages of Osdorp and Sloten so villagers no longer had to travel to Haarlem or Amsterdam to weigh their regionally produced cheese and butter.
Indeed, the Amsterdam Stock Exchange, often cited as the 1st stock Ex, originated as a market for the Ex of commodities. Early trading on the Amsterdam Stock Ex often involved the use of very sophisticated agreements, including short sales, forward agreements, and options. "Trading took place at the Amsterdam Bourse, an open disclosed venue, which was created as a commodity EX in 1530 and rebuilt in 1608. Commodity EX themselves were a relatively recent invention, existing in only a handful of cities."
In 1864, in the US, wheat, cattle, corn, and pigs were widely traded using standard instruments on the Chicago Board of Trade, the world's oldest options and futures exchange. Other food commodities were added to the Commodity Ex Act and traded through CBOT in the 1940s and 1930s, expanding the list from grains to include rice, butter, mill feeds, eggs, Irish potatoes and soybeans. Successful commodity markets require broad accord on product difference to make each commodity acceptable for trading, such as the chastity of gold in bullion. Classical civilizations built complex universal markets trading gold or silver for cloth, wood spices, and weapons, most of which had standards of timeliness and quality.
Through the 19th century "the Ex became effective spokesmen for, and innovators of, warehousing, and financing, improvements in transportation, which paved the way to expanded interstate and Universal trade."
Reputation and clearing became central concerns, and states that could control them most effectively developed powerful financial centers.
History of Commodity
Let’s Start with Share Market: A stock market is Similar to a share market. The key difference is that a stock market helps you trade financial instruments like contract, derivatives mutual funds, as well as shares of companies. A share market only allows trading of shares.