Equity and Commodity terms in Economy

 What is equity in economy?

In finance, equity represents the ownership “share” of an asset or company. That is, if a company and all its assets were sold, equity represents the amount of money that would be returned to a company’s shareholders. 

Also known as “shareholders’ equity,” we can think of equity as a portion of ownership in a firm or asset after subtracting any debts associated with that asset. It can be found on a company’s balance sheet.

What is commodity in crued oil?

In the world of commerce, a commodity is a basic material or product which can be purchased in large quantities for the production of other goods and services. 

Commodities are incredibly important in ensuring many of our daily essentials are available to use.

From crude oil used to warm our homes and fill our cars, to agricultural goods like wheat and corn to process into an array of food products for us to buy - commodities really are essential to our everyday lives. 

Commodities can be bought and sold directly on the spot (cash) market, or via other derivatives, such as futures and options. However, when they are traded on an exchange, commodities must also meet a minimum set of specific standards, which are also known as a basis grade.