What is the difference between a stock exchange and a commodities exchange?

What is the difference between a stock exchange and a commodities exchange Introduction: The Dynamic Landscape of Financial Markets Greetings, financial enthusiasts! In the vast realm of financial markets, numerous entities play crucial roles. Today, we'll focus on two such entities: stock exchanges and commodities exchanges. While both facilitate trading, they differ significantly in terms of assets, trading mechanisms, and overall functions. So, let's dive in and explore these distinctions in detail. Stock Exchanges: The Epicenter of Equity Trading When we think of stock exchanges, we envision bustling trading floors, where shares of publicly listed companies change hands. Stock exchanges, such as the New York Stock Exchange (NYSE) or the London Stock Exchange (LSE), primarily deal with equities. These equities, or stocks, represent ownership in companies. Investors can buy or sell these stocks, either through brokers or electronically, using the exchange's trading platform. Stock exchanges provide a transparent marketplace, ensuring fair pricing and liquidity for investors. Commodities Exchanges: The Realm of Tangible Assets