A commodity exchange is a marketplace where commodities and related derivative contracts are standardized and traded. The commodity exchange can be split into these sub-markets:

• Derivatives market: this is where commodity exchanges allow futures, options, forwards, and other derivatives to be traded
• Spot market: this is where commodity exchanges allow buying and selling of commodities in real-time (on the spot), including cash contracts
  
  

In India, there are 4 commodity exchanges that are popular and widely turned to:

• Indian Commodity Exchange (ICEX)
• Multi Commodity Exchange of India (MCX)
• National Commodity & Derivatives Exchange Limited (NCDEX)
• National Multi Commodity Exchange of India (NMCX)
  
  

Within these exchanges, the most commonly traded commodities include:

• Crude oil
• Coffee
• Corn
• Cotton
• Gold
• Natural gas
• Silver
• Sugar
• Wheat

Bonds are fixed income securities issued in exchange for a loan, generally by governments and corporations. A bond will generate a fixed interest rate on top of the principal across a fixed time period. A bond market is a place where bonds are issued, bought, and sold. Bonds are issued in exchange for a loan generally by governments and corporations.

The quality of a bond can be understood by its credit rating, which is nothing but the creditworthiness of the company issuing it. The best bonds in India are known to have the following credit rating:

• SOV: Only for government bonds
• AAA: Highest
• AA+: High-medium
• A+: Upper-medium
• BBB+: Lower-medium
• BB+: Speculative
• B+: Highlight speculative
• CCC+: Risky
• CC: Extremely risky

A balance sheet is a financial statement that reveals a company’s assets, liabilities, and shareholders’ equity. It can help current and potential investors understand the financial health of a company.

These are some of the key components of a balance sheet:

• Current assets : Cash & cash equivalents, marketable securities, accounts receivable, inventories, prepaid expenses, and other liquid assets


• Fixed assets : Property, equipment, furniture, machinery, software, and other intangible assets


• Current liabilities : Short-term debt, unearned revenue, accounts payable, other accrued expenses & liabilities


• Long Term liabilities : Long-term loans, bonds, and others


• Shareholders’ equity : Paid-in capital and retained earnings