Abstract

A physical or virtual marketplace for buying, selling and trading raw or primary products. For investors' purposes there are currently about 50 major commodity markets worldwide that facilitate investment trade in nearly 100 primary commodities.

Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (gold, rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn, wheat, coffee, sugar, soybeans, pork, etc.) There are numerous ways to invest in commodities. An investor can purchase stock in corporations whose business relies on commodities prices, or purchase mutual funds, index funds or exchange-traded funds (ETFs) that have a focus on commodities-related companies. The most direct way of investing in commodities is by buying into a futures contract.

Introdution
A physical substance, such as food, grains, and metals, which is interchangeable with another product of the same type, and which investors buy or sell, usually through futures contracts. The price of the commodity is subject to supply and demand. Risk is actually the reason exchange trading of the basic agricultural products began. For example, a farmer risks the cost of producing a product ready for market at sometime in the future because he doesn't know what the selling price will be.

More generally, a product which trades on a commodity exchange; this would also include foreign currencies and financial instruments and indexes.

A commodity exchange is a market organized to allow for the selling and buying of commodities. Commodities, which are hard goods, as opposed to services, may be bought and sold on a commodity exchange in three types of markets: cash, futures and options. Cocoa, corn, crude oil, and gold are a few examples of commodities traded on a commodity exchange. A commodity exchange is considered to be essentially public because anybody may trade through

its member firms. The commodity exchange itself regulates the trading practices of its members while prices on a commodity exchange are determined by supply and demand. A commodity exchange provides the rules, procedures, and physical for commodity trading, oversees trading practices, and gathers and disseminates marketplace information. Commodity exchange transactions take place on the commodity exchange floor, in what is called a pit, and must be affected within certain time limits. Floor traders, floor brokers and futures commissions merchants working on the floor of a commodity exchange must be registered by the SEC.

NEED AND IMPORTENCE OF STUDY One of the single best things you can do to further your education in trading commodities is to keep thorough records of your trades. Maintaining good records requires discipline, just like good trading. Unfortunately, many commodity traders dont take the time to track their trading history, which can offer a wealth of information to improve their odds of success most professional traders, and those who consistently make money from trading commodities, keep diligent records of their trading activity. The same cannot be said for the masses that consistently lose at trading commodities. Losing commodity traders are either too lazy to keep records or they cant stomach to look at their miserable results. You have to be able to face your problems and start working on some solutions if you want to be a successful commodities trader. If you cant look at your mistakes and put in the work necessary to learn from them, you probably shouldnt be trading commodities. OBJECTIVE OF THE STUDY This study is done to know about Primary and Secondary capital service market activities. To know why the companies go to new issue market. To know how the primary market intermediaries communicate companies and investors. To know how the primary market activities used by the companies in their new issue shares. To know how the companies listed in the stock exchanges.

 To know how trading activity is to be done. To know the complete awareness of secondary market (stock exchanges like NSE, BSE).

METHODOLOGY:
The study uses extensively both primary and secondary data

Primary Data:
Information was collected through this source comprises of discussions with the personnel of Fortis securities

Secondary Data:
The secondary data includes information obtained from various sources that includes newspaper articles, business magazines and web

LIMITATIONS OF THE STUDY

Time constraint was a major limiting factor. Forty five days were insufficient to even grasp the theoretical concepts. Several other strategies that could have been studied were not done. Lack of knowledge with the brokers. Difference of theory from practice. Absence of required knowledge and technology.