commodity

commodity definition - business

commodity

  1. A generic, largely unprocessed good that can be processed and resold. Commodities traded in the financial markets for immediate or future delivery are grains, metals, and minerals. They are generally traded in very large quantities. Also called physical commodity. See also futures contract.
  2. A product that is difficult or impossible to differentiate from similar products from competitors. Pencils, computer memory chips, and light bulbs are examples of commodity products.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.