DIFFERENCES BETWEEN COMMODITY AND EQUITY

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Commodity and equity are the medium of investments made. Where as commodity deals the underlying value of the asset\products like agri products and non-agri products which are not physically traded but traded through contracts and equity deals on the investment made on the shares sold by the registered company to be a part on ownership of the share in the business.

The major differences of  Commodity and Equity are

  1.    Commodity is traded in MCX (multi commodity exchange of India pvt ltd) and equity is traded in NSE OR BSE
  2.  Liquidity in equity investment is higher than commodity investment.
  3.  Equity investment is for longer duration where as commodity is invested to earn profit within a short term.
  4. The equity investor has the right and obligation to buy and sell the owned shares where as in commodity the buyer or seller has only right but no obligation.
  5.  The investment is preferred on the demand in case of commodity and the performance of the company in case of equity.

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