Commoditization

Commoditization

What Is Commoditization? Commoditization refers to the process of making something into a commodity. More broadly, commodification is taking something that previously was not available in the market and making it so, for instance the commoditization of the food chain has brought many more foods to the market, but has left small producers behind in favor

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