DISTINGUISH – PRODUCE & STOCK EXCHANGE

DISTINGUISH – PRODUCE & STOCK EXCHANGE
Q. Distinguish between Produce Exchange and Stock Exchange. Use Pakistan as a reference.
ANSWER:
Exchange in another name foe an organized economic market. An Economic Market can be classified
into:
a). Commodity Market and
b). Capital Market.
A Commodity Market can further be group into;
i) Produce Exchange or market.
ii) Manufactured and Party – manufactured Goods Market.
iii) Bullion Market.
Similarly, a Capital Market has its groups, namely:
i) Money Market.
ii) Foreign Exchange Market.
iii) Stock Exchange.
A Produce Exchange/Market is a market dealing in raw produces, e.g., Wheat, Rice, Iron, etc. Such
exchange in Pakistan is located in Karachi, Lahore and Faisalabad.
Produce Exchange/Market is an organized market for investment. It facilities the movement of Stock
and Shares from an industry or region to another. Karachi Stock Exchange and Lahore Stock Exchange
do all such business.
We can compare the two types of exchange, via, Produce Exchange and Stock Exchange with the help
of their relevant features.