just curious. don’t know much about trading..?

 

  • Unbiased.co.uk 9:02 am on March 17, 2010

    When investors buy stocks they are buying shares in individual companies–hence the phrase the Stock Market. You take your money and buy shares in XYZ company in the belief that the value of the company will rise and so too will the value of your holding. The converse also applies, a falling value company sometimes becomes unattractive to invest in but not always so–businesses and economies are cyclical and hence values of stock goes up and comes down –the art is being able to buy when stock is out of favour and sell when its value is on upward momentum.

    Buying commodities is a high risk investment strategy–whereby investors buy either directly or more usually indirectly into such things as nickel, platinum or oil or wheat. The demand/supply chain has a huge impact and influence on price and consequently the gains and losses investors make in this sector.

    Disclaimer:
    The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.

  • dayvidgallagher 9:02 am on March 17, 2010

    This an an hugely complex question. But all I think you really need to know for now is that stocks are ownership in a company(BP British Petroleum). Commodities are ownership of an item (Crude oil).

    There is a ton more to it than that but you get the idea now.