What is Stocks?
A stock, also known as a share or equity, represents ownership in a company. There are two main types of stocks: common stock and preferred stock. Common stock is the most common type of stock and gives shareholders the right to vote at shareholder meetings and receive dividends. Preferred stock generally does not come with voting rights, but it often has a higher dividend rate than common stock and may have priority over common stock in the event that the company goes bankrupt and is liquidated. Stocks can be bought and sold on stock exchanges, such as the New York Stock Exchange (NYSE) or the NASDAQ.
The price of a stock is determined by supply and demand in the market, with the price rising as demand for the stock increases and falling as demand decreases. There are many factors that can affect the price of a stock, including the company's financial performance, the overall state of the economy, and changes in industry conditions.
What is Commodities?
Commodities are raw materials used to create the products consumers buy, from food to furniture to gasoline or petrol. Commodities include agricultural products such as wheat and cattle, energy products such as oil and natural gas, and metals such as gold, silver and aluminum.
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