Home / Small Business
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Monday, November 24, 2008
Check here to find Young Guns columns that you may have missed.
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Wednesday, December 31, 2008
A franchise made good by making sure everyone knows its name.
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Wednesday, December 31, 2008
This system's best franchisees are tech-savvy, yet sociable.
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Wednesday, December 31, 2008
For an entrepreneur looking for no work and all play, it doesn't get much better than this.
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Monday, December 29, 2008
In the name of security, new regulations affecting shipments to the U.S. are enacted. Importers need to learn how to cope.
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Wednesday, December 24, 2008
Sure, Santa is a great guy, but financial pros evaluating his business model aren't jolly about his net worth.
More News
- Top 5 Mistakes in Forming Your Corporation
- 10 New Year's Resolutions
- Can You Get an SBA Loan?
- 5 Ways to Kill a Great Marketing Plan
- Convert Your Contacts
- The Cost of a Price Hike
- Walking the Employee Benefits Tightrope
- Salaries Are In The Open
- Do Tech and Meetings Mix?
- Those Who Plan Together, Travel Together
Blog List
SmartMoney's Small Business Site
- Starting Up: 5 Best States for Starting a Business
Tue, 30 Dec - The Return of Rock?
Fri, 19 Dec - Stand Out: This Biz Simplifies Bringing in a Project on Time
Fri, 19 Dec - Zappos.com Dips Toe Into Management Consulting
Thu, 18 Dec
FOX Translator
No data currently available.
No data currently available.
Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.
What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)
So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.
Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.
