equity gives the person ownership rights while commodity refers to goods that can be traded. Commodity refers to a generic form of a product that is very basic and undifferentiated. Examples of a commodity include sugar, wheat, copper, bio fuels, coffee, cotton, potatoes, etc. A commodity is a product that cannot be differentiated because every commodity is equal to each other and cannot be separated out. Equity refers to some form of capital that is invested into a business, or an asset that represents ownership held in a business. In a company balance sheet, the capital contributed by the owner and shares held by a shareholder represent equity as it shows ownership held in the company by other.