Stock market is a kind of economic network that facilitates economic transactions for the trading of company stocks as well as derivatives at an agreed price. Now it is the most important resource for the companies to raise their capital significantly. Stock market has the history of its own. In the 12th century, the concept of the stock market came to the people of French at first. In the beginning of the 14th century the bankers of Verona, Pisa, Florence and Genoa began the business of trading in government securities. Dutch East India Company was the pioneer of the stock market.It was the first company in the world who issued the first stocks and bonds on Amsterdam Stock Exchange.


Generally, the stocks are listed and traded within the stock exchanges. Stock exchange is the entities of mutual organization that are specialized in the trade of bringing the buyers and sellers of the organizations to the listed securities and stocks together. There are two types of stock exchanges around the world. First one is the ?open outcry? where the traders have to enter in a verbal bid and offer simultaneously. Second one is the ?virtual exchange? where the traders are electronically getting connected to a computer network. Traders mainly work with auction market model where a buyer has to bid an exact price for a stock. If the price matches with the seller?s price only then the stock can be sold. In the case of multiple buyers the stock can be sold on the basis of first come first served. The main function of a stock exchange is to support the exchange of securities among the buyers and sellers of a stock market.

The participants of the stock market can be range from a small investor to a giant hedge fund trader. There is no problem to join any stock market from any corner of the world. Few decades ago the situation was not like this. Then the buyers and sellers worked as the individual investors of some particular corporations. With the passage of time the stock market becomes institutionalized and the buyers and sellers become more organized. These organized investors have made some important changes in the operation of the stock market. Though the corporate supremacy adversely affected by the organized investors, it has made the business smoother than before.

stock market not only expands the business but also accelerate the global finance significantly. This will be further enhanced with passage of time.

Commodity trading is a process of buying and selling goods. Actually Commodity trading refers the market in which the raw materials and products are exchanged. Normally commodity can be defined as some thing which has a value whose quality is less or more consistent and produce a lot by the producer. When people think to invest in commodities they also think for a wide range of use. But trade commodities transaction conducts are participant on commodity exchange. It?s very similar to stock exchange where the exchange deals with commodities around the world. Commodity trading doesn?t put the limit of trading the product in particular exchange. Investors are free to buy and sell product what ever they desire.


Here is a question ?how Commodity trading works?? .Commodity trading is being fully changed from its previous state. It?s come out from Narrow Street to crowded markets. NCDEX and MCX are new commodities exchanges which are fully computerized. Now you don?t have to predict about the price of product which going to high or less. But in the previous stage you have to predict which product is going to be high priced. You have to calculate and you have to hear about the production then you have to bet otherwise not. Suppose you?re thinking for buying gold sale the crude oil because the prices of gold will go up and the prices of crude oil going to fall. If you have confidence of your prediction you could buy or sale goods and you could bet some money on your prediction because these predictions have a good chance of coming true.

If you want to buy gold you must have a strong believe on your prediction and you have to be buy the bar of gold and make sure that the bar is pure. After buying you have to store it provide the security, transport it to vault. You have to wait for the perfect time for going up in price and sell them at a profit. So
Commodity trading is far better way of commodities exchange.

Similar with stock trading, commodity trading has some risk. Investors have to monitor the relationship between supply and demand. The investor also should keep on eye how that factor impact the current available commodities price index. When commodity trading is more consistent and stables than other forms there always a chance of worth impact. There may be natural disasters, consumer tastes changes and political issues may play negative impact.