What is Market
Market is defined as an established set up where two or more revelry buyer and seller are engage in interchange of goods, services and data is called a market. Preferably a market is a habitation where two or more parties are busy in buying and selling of products and services.
The two main people are tangled in a contract, known as seller and buyer.
The seller is the one who sells goods and services to the buyer in return for money. A competitive market contains more than one buyer and more than one seller. As the number of the buyer and sellers increases the competitiveness of the market also increases.
There are five determinants of a competitive market structure for a specific good and service:
- Quantity and environment of sellers.
- The amount and behavior of buyers.
- Product nature.
- Market exit and entry conditions
- Economies of scale
Types of Markets
There are many types of market but the main types of the market are as follow:
- Physical Markets
- Non Physical Markets / Virtual Markets
- Auction Market
- Black Market
- Knowledge Market
- Financial Market
1. Physical Markets
Physical market is a condition in which buyers can meet face to face with the sellers and obtaining the chosen stock from them in return for money. Shopping malls, department stores, retail stores are examples of physical markets.
2. Non Physical Markets / Virtual Markets
A market condition where, buyers buying goods and services through internet or virtually. This type of market in which the buyers and sellers do not meet or interact face to face, instead the contract is done through internet. Examples – online sites like daraz.com
3. Auction Market
An auction market is the type of market in which the seller sells his goods or service to the customer who is having the highest bidder.
4. Black Market
A black market is a type of market where illegal goods or services that have been banned by the government are selling; like drugs and weapons are sold.
5. Knowledge Market
Knowledge market is a kind of market where exchange of data and awareness based products is selling.
6. Financial Market
A type of Market which deals in the exchange of liquid assets (money) is called a financial market.
Types of Financial Market
- Stock Market: A form of market in which sellers and buyers interchange shares is known as stock market.
- Bond Market: A type of financial market where buyers and sellers are involved in the interchange of debt securities, which are mostly in the form of bonds, is known as a bond market. A bond is an agreement signed by both the parties in which one party agrees to return money with interest at fixed intervals.
- Foreign Exchange Market: A type of financial market where, parties are tangled in exchange of currency. In a foreign exchange market it is also called currency market, where one party interchanges one country’s currency with equivalent quantity of another currency.
- Predictive Markets: Predictive market is a form of financial market in which interchange of good or service takes place for future. When the market goes up its beneficial for the buyer and when the market goes down its then loss of the buyer.
November 18, 2018