Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Commerce

What it is:

Commerce is the exchange of goods, services or commodities on a large scale.

How it works (Example):

Nearly every business transaction is a form of commerce: purchasing food at a restaurant, buying stocks on the stock market, selling goods in a store, drilling for oil, etc.

The financial industry often breaks down commerce into more specific categories. For example, international commerce takes place between countries, interstate commerce is done across state lines, and electric commerce (e-commerce) takes place via the Internet.

Why it Matters:

Commerce is the fundamental action that takes place in every transaction involving money and/or trade. It is the basic component of the business and financial world. 

In most countries, commerce is regulated; the extent of the regulation is a reflection of monetary policy, fiscal policy and political conditions. In the U.S., the Department of Commerce has a broad mandate to advance economic growth and job opportunities for Americans. It has a broad range of responsibilities, a very small sample of which includes gathering and releasing data on GDP, performing the decennial census, and running the Patent and Trademark Office.

Related Terms View All
  • Secular Market
    Let's say the United States experiences a massive terror attack on its own soil, similar...
  • European Credit Research Institute (ECRI)
    The ECRI is an independent, non-profit research institute founded in 1999 by a group of...
  • Vertical Market
    Let’s assume XYZ Company manufactures a special kind of medical glue. The glue only works...
  • Naked Shorting
    Traders and investors engage in short selling in order to make a profit by leveraging...
  • Level I Quote
    Level I quotes do not disclose which market makers are bidding for or offering the...