15. Commodity exchange

A commodities exchange is a baleine exchange where various commodities and derivatives products are traded. Mostcommodity markets across the world trade in agricultural products and other raw materials (like wheat, barley, sugar,maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals, etc.) and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or ocean freight contracts.

Commodities exchanges usually trade futures contracts on commodities, such as trading contracts to receive something, say corn, in a certain month. A farmer raising corn can sell a future contract on his corn, which will not be harvested for several months, and guarantee the price he will be paid when he delivers; a breakfast cereal producer buys the contract now and guarantees the price will not go up when it is delivered. This protects the farmer from price drops and the buyer from price rises.

Speculators and investors also buy and sell the futures contracts in attempt to make a profit and provide liquidity to the system. However, due to the financial leverage provided to traders by the exchange, commodity futures traders face a substantial risk.

Commodity Exchange Act

Commodity Exchange Act (ch. 545, 49 Stat. 1491, enacted June 15, 1936) is a federal act passed in 1936 by the U.S. Government (replacing the Grain Futures Act of 1922).

The Act provides federal regulation of all commodities and futures trading activities and requires all futures and commodity options to be traded on organized exchanges. In 1974, the Commodity Futures Trading Commission (CFTC) was created as a result of the Commodity Exchange Act, and in 1982 the National Futures Association (NFA) was created by CFTC.

16. Commodities

In economics, a commodity is a marketable item produced to satisfy wants or needs.^[1] Economic commodities comprise goods and services.^[2]

The exact definition of the term commodity is specifically used to describe a class of goods for which there is demand, but which is supplied without quantitative differentiation across a market.^[3] A commodity has full or partial fungibility; that is, the market treats its instances as equivalent or nearly so with no regard to who produced them. As the saying goes, "From the taste of wheat it is not possible to tell who produced it, a Russian serf, a French peasant or an English capitalist."^[4] Petroleum and copperare other examples of such commodities,^[5] their supply and demand being a part of one universal market. Items such as stereo systems, on the other hand, have many aspects of product differentiation, such as the brand, the user interface and the perceived quality. The demand for one type of stereo may be much larger than demand for another.

In contrast, one of the characteristics of a commodity good is that its price is determined as a function of its market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, salt, sugar, tea, coffee beans, soybeans, aluminum, copper, rice, wheat, gold, silver, palladium, and platinum. Soft commodities are goods that are grown, while hard commodities are ones that are extracted through mining.

There is another important class of energy commodities which includes electricity, gas, coal and oil. Electricity has the particular characteristic that it is usually uneconomical to store; hence, electricity must be consumed as soon as it is produced.

Commoditization occurs as a goods or services market loses differentiation across its supply base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently. As such, goods that formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals andDRAM chips. The New York Times also discusses multivitamin supplements as an example of commoditization; a 50 mg tablet of calcium is of equal value to a consumer no matter what company produces and markets it, and as such, multivitamins are now sold in bulk and are available at any supermarket with little brand differentiation.^[6] Following this trend, nanomaterials are emerging from carrying premium profit margins for market participants to a status of commodification.^[7]

There is a spectrum of commoditization, rather than a binary distinction of "commodity versus differentiable product". Few products have complete undifferentiability and hence fungibility; even electricity can be differentiated in the market based on its method of generation (e.g., fossil fuel, wind, solar), in markets where energy choice lets a buyer pay more for renewable methods if desired. Many products' degree of commodification depends on the buyer's mentality and means. For example, milk, eggs, and notebook paper are considered by many customers as completely undifferentiable and fungible; lowest price is the only deciding factor in the purchasing choice. Other customers take into consideration other factors besides price, such as environmental sustainability and animal welfare. To these customers, distinctions such as "organic versus not" or "cage free versus not" count toward differentiating brands of milk or eggs, and percentage of recycled content or Forest Stewardship Council certification count toward differentiating brands of notebook paper.

17. Stock trading function

A stock trader is a person or company involved in trading equity securities. Stock traders may be an agent, hedger, arbitrageur,speculator, or investor. A stock investor is an individual orcompany  who puts money to use by the purchase of equity securities, offering potential profitable returns, as interest, income, or appreciation in value (capital gains). This buy-and-hold long term strategy is passive in nature, as opposed to speculation, which is typically active in nature. Many stock speculators will trade bonds (and possibly other financial assets) as well. Stock speculation is a risky and complex occupation because the direction of the markets are generally unpredictable and lack transparency, also financial regulators are sometimes unable to adequately detect, prevent and remediate irregularities committed by malicious listed companies or other financial market participants. In addition, the financial markets are usually subjected to speculation.

Stock traders advise shareholders and help manage portfolios. Traders engage in buying and selling bonds, stocks, futures and shares in hedge funds. A stock trader also conducts extensive research and observation of how financial markets perform. This is accomplished through economic and microeconomic study; consequently, more advanced stock traders will delve into macroeconomics and industry specific technical analysis to track asset or corporate performance. Other duties of a stock trader include comparison of financial analysis to current and future regulation of his or her occupation.

18.Stock exchange transactions

A stock exchange is a form of exchange which provides services for stock brokers and traders to buy or sell stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends.

Securities traded on a stock exchange include stock issued by listed companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets, with buyers and sellers consummating transactions at a central location, such as the floor of the exchange.

To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of increased speed and reduced cost of transactions. Trade on an exchange is by members only.

The initial public offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets are driven by various factors that, as in all free markets, affect the price of stocks (see stock valuation).

There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that derivatives and bonds are traded. Increasingly, stock exchanges are part of a global market for securities.

In recent years, various other trading venues, such as electronic communications networks,alternative trading systems and "dark pools" have taken much of the trading activity away from traditional stock exchanges.

19. Auctions

An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.

Common name for several types of sales where the price is neither set nor arrived at by negotiation, but is discovered through the process of competitive and open bidding. The two major types of auction are (1) Forward auction in which several buyers bid for one seller's good(s) and (2) Reverse auction in which several sellers bid for one buyer's order. An auction is complete (and a binding contract is created) when a bid is accepted by the seller or the buyer (as the case may be). The internet age has transformed auction into a truly open process in which thousands of goods (from books to ships) and services (from air travel to legal advice) may be offered for bidding by anyone from anywhere and at any time on websites such as eBay.com. Internet auctions are an important aspect of electronic commerce.

Each type of auction has its specific qualities such as pricing accuracy and time required for preparing and conducting the auction. The number of simultaneous bidders is of critical importance. Open bidding during an extended period of time with many bidders will result in a final bid that is very close to the true market value. Where there are few bidders and each bidder is allowed only one bid, time is saved, but the winning bid may not reflect the true market value with any degree of accuracy. Of special interest and importance during the actual auction is the time elapsed from the moment that the first bid is revealed to the moment that the final (winning) bid has become a binding agreement.

Auctions can differ in the number of participants:

In a supply (or reverse) auction, m sellers offer a good that a buyer requests

In a demand auction, n buyers bid for a good being sold

In a double auction n buyers bid to buy goods from m sellers

Prices are bid by buyers and asked (or offered) by sellers. Auctions may also differ by the procedure for bidding (or asking, as the case may be):

In an open auction participants may repeatedly bid and are aware of each other's previous bids.

In a closed auction buyers and/or sellers submit sealed bids

Auctions may differ as to the price at which the item is sold, whether the first (best) price, the second price, the first unique price or some other. Auctions may set a reservation price which is the least/maximum acceptable price for which a good may be sold/bought.

Without modification, auction generally refers to an open, demand auction, with or without a reservation price (or reserve), with the item sold to the highest bidder.

11. A developing country, also called a less-developed country, is a nation with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries.[1] On the other hand, since the late 1990s developing countries tended to demonstrate higher growth rates than the developed ones.[2]

Countries with more advanced economies than other developing nations but that have not yet demonstrated signs of a developed country, are often categorized under the term newly industrialized countries.[5][6][7][8]

Kofi Annan, former Secretary General of the United Nations, defined a developed country as "one that allows all its citizens to enjoy a free and healthy life in a safe environment."[9] But according to the United Nations Statistics Division,

There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system.[3]

The designations "developed" and "developing" are intended for statistical convenience.

On the other hand, according to the classification from International Monetary Fund (IMF) before April 2004, all countries of Central and Eastern Europe as well as the former Soviet Union (USSR) countries in Central Asia (Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan) and Mongolia, were not included under either developed or developing regions, but rather were referred to as "countries in transition"; however they are now widely as "developing countries".

The IMF uses a flexible classification system that considers "(1) per capita income level, (2) export diversification—so oil exporters that have high per capita GDP would not make the advanced classification because around 70% of its exports are oil, and (3) degree of integration into the global financial system."[11]

The World Bank classifies countries into four income groups. These are set each year on July 1. Economies were divided according to 2011 GNI per capita using the following ranges of income:[12]

• Low income countries had GNI per capita of US$1,026 or less.

• Lower middle income countries had GNI per capita between US$1,026 and US$4,036.

• Upper middle income countries had GNI per capita between US$4,036 and US$12,476.

• High income countries had GNI above US$12,476.

• 12. For a world trade geographic distribution prevalence of the countries with the developed market economy, industrially developed countries is characteristic. The developed countries trade most of all with one another. Trade of developing countries is focused basically on the markets of industrially developed countries. Their I share in world trade makes about 25 % of world trade turnover. Significance in world trade of the countries-exporters of petroleum the last years reduces - I sja; all becomes more appreciable a role of the so-called new industrial countries, especially Asian. In modern conditions active sharing of the country in world trade is connected with significant advantages, i.e. Allows: 1) to use I resources available in the country more effectively;

• V 2) to join world achievements of science and technology; In more deadlines to carry out structural reorganisation of the economy; More full and more diversly to satisfy requirements of the population. World trade in various groups of the countries is naturally connected with an originality of national economies of groups of the countries. The first group are rich countries of the world on which the large part of world production and incomes is necessary. Other countries of the world have received the name developing, or slaborazvityh, the countries. The small volume of trade between underdeveloped countries says that the huge part of their export consists of raw materials and the materials used in production of industrially developed countries. Periodically between the "rich" and "poor" countries there are political disagreements concerning revenue distribution from trade. For correction of a situation within the limits of this system special measures should be carried out: the countries should receive any indemnification for those difficulties which they should face. Being debtors of principal views of raw materials, the countries are especially vulnerable for the macroeconomic policy of industrially developed countries defining a world level of interest rates and the prices for primary goods. As manufacturers of manufactured goods speak these countries about the vulnerability for protectionism. govli And all it is aggravated with terrifying poverty. nom development of the countries, the regions, all world community: Foreign trade became the powerful factor of economic growth;

• There was an appreciable increase of dependence of the countries from the international commodity exchange. International trade serves as the means allowing the countries - to participants of process to develop the specialisation, to raise productivity of available resources and thus to increase volume of the goods made by them and services, together with a standard of well-being of their population. In second half of current century the international exchange acquires grandiose scales. Nowadays 4/5 total volumes of the international economic relations are necessary on world trade. Modern international trade develops high rates. Similar stable growth of international trade was a consequence of display of following factors: Developments of the international division of labour and production internationalisation; The scientific and technological revolution, promoting fixed capital updating, creation of new branches of economy; 3} the vigorous activity of transnational corporations in the world market; Regulations (liberalisation) of international trade by means of actions of the World Trade Organization (WTO); Liberalisations of international trade, transition of many countries to a mode including cancellation of quantitative restrictions of import and essential decrease of the customs duties; formation of free economic zones; 6} developments of processes of trade and economic integration - removal of regional barriers, formation of the general markets, zones free tor - repadami between these prices. At an overflowing of the goods from the country with more low prices in the country with higher the prices in one of them will raise, and in other will go down, and the balance price will be established. A condition for this purpose is the uncontrolled liberty of international trade; Contract price, i.e. The price established during negotiations between two partners from the different countries; Market quotations, i.e. The prices develop during gamble on commodity exchanges where set of sellers interact with set of buyers; Forced sale price: here one seller and set of buyers who compete with one another; The price of the auctions, when one buyer and many sellers competing among themselves; The world prices - the prices of big exporters, to-. torye are assumed as a basis by the others uchast - 2L nikami the world markets. Have informal character. On occasion for the world price the prices of large importers or the quotation of the largest exchanges and auctions starting; The help prices - the prices which have actually developed for today published in a press or ¦ in special directories; The "sliding" price - is established almost in direct dependence on a supply and demand parity. In process of saturation of the market it decreases. Such method of fixing of the price is applied more often in relation to essential commodities; Exclusively-market price, develops in uslovijahdominirujushchego positions of one or several subjects of pricing. The prices are established considerably above an average level.

20. Industrial goods trade

Trade is the transfer of the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called amarket. The original form of trade was barter, the direct exchange of goods and services for other goods and services. Later one side of the barter was precious metals. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result,buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.

Trade exists for man due to specialization and division of labor, in which most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some trad-able commodity, or because different regions size allows for the benefits of mass production. As such, trade at market pricesbetween locations benefits both locations.

Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or bymail, in small or individual lots for direct consumption or use by the purchaser.^[1] Wholesale trade is defined as the sale of goods that are sold as merchandise to retailers, and/or industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.^[2]

Trading is a value-added function: it is the economic process by which a product finds its end user, in which specific risks are to be borne by the trader.

Trading can also refer to the action performed by traders and other market agents in the financial markets.

21.Complete equipment delivery

Complete equipment delivery-a long term asset account containing the cost of delivery equipment acquired by a company and used in its business. The account will appear on the balance sheet under the heading of Property, Plant and Equipment. There will be a related contra asset account Accumulated Depreciation: Delivery Equipment where the depreciation expense is accumulated.

The term means of delivery generally refers to the part of a weapon system that serves to deliver a weapon to a target.

The term 'means of delivery' is used, for example, in the 1972 Biological Weapons Convention. Pursuant to Article 1, states parties to the Convention undertake 'never in any circumstances to develop, produce, stockpile or otherwise acquire or retain: ... weapons, equipment or means of delivery' designed to use microbial or other biological agents or toxins for hostile purposes or in armed conflict.

One commentator points out:

the lack of definition of “weapons, equipment or means of delivery” led to a controversy. In ratifying the BW Convention, Switzerland reserved the right to decide for itself which items fall within the definition of weapons, equipment or means of delivery designed to use biological agents or toxins. The United States entered an objection to this reservation, claiming that it would not be appropriate for States to reserve unilaterally the right to take such decisions. In its opinion, the prohibited items are those the design of which indicates that they could have no other use than that specified in the Convention, or that they were intended to be capable of the use specified. There are, however, few weapons, equipment or means of delivery which would meet such criteria.

The term 'means of delivery' is also used in 1980 Protocol II to the CCW and1996 Amended Protocol II to the CCW on mines, booby-traps and other devices. Article 3(8) of the latter prohibits 'the indiscriminate use' of mines, booby-traps and other devices and specifies that indiscriminate use includes any placement of such weapons 'which employs a method or means of delivery which cannot be directed at a specific military objective'. (Art. 8(3)(b)) 

In some instances, different rules apply to the use of weapons depending on their means of delivery. Notably, pursuant to Article 2(2) of Protocol III to the CCW

It is prohibited in all circumstances to make any military objective located within a concentration of civilians the object of attack by air-deliveredincendiary weapons. (Emphasis added)

In a declaration upon signature of the treaty, the United Kingdom expressed its understanding that this does 'not imply that the air-delivery of incendiary weapons, or of any other weapons, projectiles or munitions, is less accurate or less capable of being carried out discriminately than all or any other means of delivery.'

22.Trades

Trade is the transfer of the ownership of goods or services from one person or entity to another in exchange for other goods or services or for money. Trade is sometimes loosely called commerce or financial transaction orbarter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services for other goods and services. Later one side of the barter was precious metals. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. Theinvention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.

Trade exists for man due to specialization and division of labor, in which most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have acomparative advantage in the production of some trad-able commodity, or because different regions size allows for the benefits of mass production. As such, trade at market prices between locations benefits both locations.

Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption or use by the purchaser.^[1] Wholesaletrade is defined as the sale of goods that are sold as merchandise to retailers, and/or industrial, commercial, institutional, or other professional businessusers, or to other wholesalers and related subordinated services.^[2]

Trading is a value-added function: it is the economic process by which a product finds its end user, in which specific risks are to be borne by the trader.

Trading can also refer to the action performed by traders and other market agents in the financial markets.