What Is a Commodity and Understanding Its Place throughout the Stock Market

What Is a Commodity and Understanding Its Place throughout the Stock Market

What Is a Commodity? A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. A commodity thus usually refers to a raw material used to manufacture finished goods. A product, on the other hand, is

Commodity-Backed Bond Definition

Commodity-Backed Bond Definition

What Is a Commodity-Backed Bond? A commodity-backed bond is a type of debt security where the coupon payments and/or principal is directly linked to the price of the underlying commodity. Key Takeaways Commodity-backed bonds are debt securities where the price of an underlying commodity directly influences the coupon payments and/or principal.Not only can commodity-backed bonds