NISM Series XV : Research Analyst Certification Exam Notes
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Hard commodities are essentially natural resources that are mined or extracted. This includes all types of metals and crude oil. Soft commodities refer to commodities that are grown i.e. agricultural products. Soft commodities include grains and pulses.
Commodity ETF is an exchange traded fund that invests the pooled investment in a range of physical commodities. Investors can invest in commodity ETF by buying the units of the fund. The value of the units moves in line with the NAV of the fund, which, in turn, moves in line with the commodity prices.
Managed futures contract refers to a portfolio of futures contract that are actively managed by professionals. Instead of buying the actual underlying asset, the investment managers take position in the futures contract.
Warehouse receipt is a document that shows proof of ownership of goods that are stored in a warehouse. Most of these warehouse receipts are negotiable. Thus, the title to the underlying goods can be transferred by simply transferring the receipts.
Primary Market, also called the new issue market, is where issuers raise capital by issuing securities to investors. Fresh securities are issued in this market.
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