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Question
Give one difference between Commodity market and Capital market.
Distinguish Between
Solution 1
| Commodity Market | Capital Market |
| This is an organised market where commodities (e.g., cotton) are bought and sold according to prescribed rules and regulations. | This is a specialised market for providing long-term finance to business enterprises. It comprises specialised financial institutions, stock exchanges, investment trusts, insurance companies. |
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Solution 2
| Basis of Distinction | Commodity Market | Capital Market |
| 1. Subject matter | Commodities are bought and sold | Capital is borrowed or lent |
| 2. Tangibility | Tangible items | Intangible items |
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Types of Markets
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