Commodity
A basic raw material, like oil, wheat or copper, that is bought and sold in large amounts. Its price moves with supply and demand.
In the news
How “commodity” came up in recent issues.
- Oct 26Oil jumps and stocks slide: what it means for gas money
“Oil is a commodity: a basic raw material, like wheat or copper, that is bought and sold in huge amounts and whose price moves with supply and demand.”
Related words
- Crude oil
- Oil as it comes out of the ground, before it is made into gas and other fuels.
- Demand
- How much of something people want to buy at each price. When the price goes up, people usually buy less.
- Dow Jones Industrial Average
- A stock market index that tracks 30 large U.S. companies.
- Federal Reserve
- The U.S. central bank, often called the Fed. It raises or lowers a key interest rate to keep prices stable and jobs plentiful.
- Interest
- The price of borrowing money. Borrowers pay it, and savers earn it.
- Interest rate
- Interest shown as a percent of the amount borrowed or saved, usually per year.
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