Commoditization
1. A situation when illiquid financial contracts are changed or modified in a way that promotes trading and results in a more liquid market.
2. Making a product into a commodity. Investopedia Says:
1. While many consider this sort of adjustment worthwhile, some view commoditization as a cause of price fluctuations.
2. When a product becomes indistinguishable from others like it and consumers buy on price alone, it becomes a commodity. Related Terms:
Commodity
Contract
Illiquid
Liquidity |