There can be many correct answers to this question, as there are several differences between the commodity market and capital market. The commodity market trades in the economic sector. Instead of trading products like sugar and fruit, they trade economic items like gold and oil. Other items that could fall under the commodity market include hogs and copper.
A commodity can be apart of the capital market, but capital stands out because it trades things like stocks and bonds. Though they can fall under the same umbrella, the capital market is a broader term, which can refer to make things including commodities.
Capital marketis a broader term that includes thestock marketand other venues fortradingfinancial products.
Capital marketsmay trade in other financial securities including bonds, derivative contracts such as options, various loans and other debt instruments, andcommodityfutures.
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