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In the investment world, what is the difference between a commodity and a equity? |
In the investment world, what is the difference between a commodity and a equity? equity is the amount of ownership you have of something, e.g. if your house costs 250k and you have a mortgage for 200k you have 50k equity. commodities are brute products a commodity is something you have like collateral equity is how much you have invested in something. if you are buying a house and have paid 25000 on it then that is your equity commodities are usually raw material items (oil, metals, agricultural products) that are traded usually on the futures or mercantile market. equities are companies or stocks traded on the stock market. |
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