Commodity Market::How It Started

During Budget Declaration,I came to know about Commodity Market Working in India,which causes many Inflatory Pressure on our Economy which resulted into the Food Price Rise.But how it started is i Compile in this Section.........

Commodities future trading have evolved from the need for ensuring continuous supply of seasonal agricultural crop In Japan merchant stored rice in warehouses for future use In order to raised cash warehouse holder sold receipts against the stored rice these were know as rice ticket eventually such rice ticket became accepted as a kind of general commercial currency rule come into being to standardize the trading in rice ticket.
  

This concept of trading evolved in the 19th century In Chicago of trading had emerged as a major commercial hub with rice road and telegraph line It happens in 1848.
Gradually the farmers and dealer started to make commitment to exchanged the produced for future trading evolved where by the produced would agree to sell his produce (wheat) to the buyer at a future delivery date at an agree upto price this contract became popular very quickly and started changing hand even before the delivery date of the products If a dealer in not interested in taking delivery of the produce he would sell his contract to some one similarly It farmer who did not able to deliver his crop then he would pass on the responsibilities to another with some more modification such contract gradually transformed into an instrument to protect the parties evolved against adverse factors like unexpected price movement unfavorable climatic factor etc for example during bad weather people having contracts to sell wheat would be interested to hold more valuable contracts due to supply shortage conversely If there is oversupply the sellers contract value would decline. This prompted the entry of traders

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Inflation ke Reason kya hai?

I love my grandfather's stories. Who doesn't? We won't get into the ones that my grandma loves to scoff at. Like his brave encounters with tigers. Or the one about the milk that needed boiling.  But you must listen to this one. My dear grandpa used to buy 10l of milk for 50p and 40kg of rice for Re1 a good fifty years ago!  Don't believe me? Then sample this. In those days, there were coins of 1p and even less! Incredible, eh? But I have seen those with my own eyes in my father's collection of old coins. What more, I also remember seeing and transacting in 5p and 10p coins in my childhood. Alas! my friends won't get to see those currencies. Except in an collection of old coins perhaps!  Wondering why I am rambling about 1p coins and getting into the generation business?  This is not a "Kal Aaj aur Kal" story. Or maybe it is.  If you have an eye for detail you will have noticed the common thread that runs through these anecdotes. The point that I have been trying to make is how expensive things have become over the years.  My grandfather used to buy 40kg of rice for Re1 and today a kilo of rice costs Rs20! 10l of milk cost 50p in his days but today you need at least Rs120 to purchase the same amount. See what the passage of time has done. It has eroded the value of money. Having Rs800 today is equivalent to having Re1 fifty years ago!  Economists call it a decline in the purchasing power of money. Remember we encountered this term while getting acquainted with saving, borrowing and investing? The 'purchasing power of money' is the amount of merchandise that a unit of money (say a rupee) can buy.  And the term 'inflation' has its roots right there. When the purchasing power of money dwindles with time, the phenomenon is called 'inflation'. This is manifested in a general rise in prices of goods and services. But why do prices rise?

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Stocks Basics: What Are Stocks?

The Definition of a Stock
Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.

 

Being an Owner
Holding a company's stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim (albeit usually very small) to everything the company owns. Yes, this means that technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to the stock.

 A stock is represented by a stock certificate. This is a fancy piece of paper that is proof of your ownership. In today's computer age, you won't actually get to see this document because your brokerage keeps these records electronically, which is also known as holding shares "in street name". This is done to make the shares easier to trade. In the past, when a person wanted to sell his or her shares, that person physically took the certificates down to the brokerage. Now, trading with a click of the mouse or a phone call makes life easier for everybody.

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