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Answer» Differences between Stock Exchange and Commodity Exchange. | Stock Exchange | Commodity Exchange | | (i) | Meaning: Stock Exchange is an organised market for purchase and sale of industrial and financial securities. | A commodity exchange is an exchange where commodities are purchased and sold. E.g.: Gold, Silver, Rice, Wheat | | (ii) | Function: Providing easy marketability. | Offering hedging or price insurance services. | | (iii) | Object: It is facilitating capital formation. | It will facilitate goods flow through risk reduction. | | (iv) | Participants: Investors and Speculators are participating in stock exchange | Producers, dealers, traders are involved in the commodity exchange. | | (v) | Articles traded: Industrial securities such as stocks and bonds and government securities. | Only durable and graded goods are traded in this. |
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