Commodities are classified into two types. They are Hard commodities and Soft commodities.
Hard Commodities Market
Hard commodities are raw materials typically mined, such as gold, oil, rubber, iron and ore.
Soft Commodities Market
Soft commodities are typically grown agricultural primary products such as wheat,cotton, coffee and sugar.

(i) Capital markets provide funds for projects in backward areas.
(ii) This facilitates economic development of backward areas.
(iii) Long term funds are provided for development projects in backward and rural areas

(i) The stock exchange is a central market through which resources are transferred to the industrial sector of the economy.
(ii) The existence of such an institution encourages people to invest in productive channels.
(iii) Thus if stimulates industrial growth and economic development of the country by mobilizing funds for investment in the corporate securities.

A commodity market is a place where buyers and seller can trade any homogenous good in bulk. Commodities are commonly classified in two subgroups.
(i) Hard commodities : Hard commodities are raw materials typically mined, such as gold, oil, rubber, iron and ore.
(ii) Soft commodities : Soft commodities are typically grown agricultural primary products such as wheat, cotton, coffee and sugar.

Gilt-Edged Market also known as Government Securities market is the market for Government and semi-Government securities.
An important feature of the securities traded in this market. That they are stable in value and are much sought after by banks.
(i) Guaranteed return on investments
(ii) No speculation in securities
(iii) Institutional based investors which are compelled by law to invest a portion of their funds in these securities.
(iv) Predominated by such institutions as LIC, GIC, PFs and the commercial banks.

There are three ways by which a company may raise capital in a primary market. They are:
(i) Public issue: The most common method of raising capital by new companies is through sale of securities to the public. It is called public issue.
(ii) Rights issue: When an existing company wants to raise additional capital, securities are first offered to the existing shareholders on a pre-emptive basis. It is called rights issue.
(iii) Private placement: Private placement is a way of selling securities privately to a small group of investors.