Relation Between Different Commodities And Commodities Based Inventory
Inventory or share market is a market the place securities or shares of different companies are issued and traded over the alternate. here an individual buy or promote share of different companies that occur in National Stock Exchange or in Bombay inventory exchange.
here Commodities primarily based stock means that operations boiling point of oil of that company or uncooked materials that company may be boiling point of oil a particular person commodity like irrigation trade aviation trade, paint and tyre trade for all this trade there uncooked materials may be crude oil.
Thus the up and down in prices of crude oil may be directly or not directly have an effect on the operation of that firm and this would impact the costs of share of a particular person company.
And the commodities are uncooked or primary product that may be purchased or sold. in India completely different commodities are traded on its Derivative contract or in future contract.
derivative are the contract whose worth is derived from the underlying asset. this are 1 month expiry contract for supply of products on particular future date. all this commodities future contract are alternate traded securities like a inventory future contract which are traded over Multi Commodity trade (MCX).
Suppose A person Buy a single lot (i.e 100) Gold Sep Future Contract at the rate of 30000/- by paying a preliminary margin.
he is making a contract that may settle for the delivery of 1 Kg. gold before the expiry of contract by paying full amount.
To know this we will say To invest in cash or in stock Pc Jewller whose CMP is around 470.45/- share and to buy gold future contract in MCX is totally different thing.
here the prices of gold might have an effect on the operations of that company ( like annual gross sales, manufacturing and so on) by value of purchase.
In inventory market positive and destructive movement in share will not affect the revenue and loss of firm, however profit and loss would affect the prices of share in fairness or stock market.
Like a share market suggestions in cash, commodity, future and choice a particular person also can receive a advice in forex market. When he is anticipating to spend money on foreign money derivative that may be a financial instrument to invest in currency derivative.
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