MARKET

1. 2. 3. 4. 5. Market means a convenient meeting place where sellers and buyers gather together for exchange of goods. It is a centre about which or an area in which the forces leading to exchange of title of a particular product operates. Market is a place where buying and selling takes place. Buyers and sellers come together for transactions An organization through which exchange of goods takes place. The act of buying and selling of goods to satisfy human wants. An area of operation of commercial demand for commodities.

Classification of Markets
Markets have been classified, on the basis of different approaches, in various ways as under. On the basis of Geographical Area a. Family Market: When exchanges are confined within a family or close members of the family, such a market is called family market. b. Local Market: When buyers and sellers belong to a local area (say a town or village) participate in the market, it is called local market. Eg. Market for perishable goods like fish, vegetables, fruits etc. c. National Market: For certain types of commodities, a country may be regarded as a market, through the fast development of industrialization. It is called national market. In the present decade almost all the products have national market. Eg. Market for textile goods. d. International/World Market: World or International market comes up when buyers and sellers of goods evolve on world level ie, involvement of buyers and sellers beyond and boundaries of a nation. Eg. Tea and Pepper market in Cochin, London Stock Exchange etc. On the basis of Commodities of Goods. a. Commodity Market: It is the market where produced goods or consumption goods are brought and sold. Commodity markets are of three types: i. Produce Exchange Market: It is an organized market for the buying and selling of commodities. Such markets deal in one commodity only. eg. wheat exchange market , cotton exchange marrket, etc. This type of market is found only in developed industrial centres. ii. Manufactures goods Market: These markets deal with manufactured goods. Eg: Leather goods, machinery etc. The leather goods, machinery etc. The leather goods market of Kanpur, Exchange of Mumbai is examples. iii. Bullion Market: This type of market deal with the purchase or sale of gold, silver etc. Bullion markets of Mumbai, Kolkata, Kanpur etc. are examples. b. Capital Market: These are the markets which provide financial assistance to those who are in need of finance. Capital markets are the markets which borrow and lend money. They are of three types: i. Money Market: Money market deals with short term funds. These markets help or guide the public to invest their surplus funds in industrial concerns. London is the world's biggest money market. ii. Foreign Exchange Market: It is an international market. This type of market helps exporters and importers, in converting their currencies into foreign currencies and vice versa. iii. The Stock Exchange Markets: Stock exchanges are the organized markets for the purchasing and selling of second-hand listed securities. It is also known as security market. Stock exchanges of Kolkatta, Chennai etc. are examples. 3. On the basis of Economics a. Perfect Market: A market is said to be perfect market if it satisfies the following conditions. 1. Large number of buyers and sellers. 2. prices should be uniform throughout the market. buyers and sellers have a perfect knowledge of markets. goods can be moved from one place to another without restrictions. It is to be noted that such type of markets are rarely found. b. Imperfect Market : A market is said to be imperfect when: i. products are similar but not identical ii. prices are not uniform iii. there is lack of communications iv. there are restrictions on the movements of goods. 4. On the basis of Transaction a. Spot Market: In such a market goods are exchanged and physical delivery of goods take place immediately. b. Future Market: In such a market contracts are made but physical delivery of goods take place only on a future date. The dealing and settlement take place on different dates. 3. 4.

5. On the basis of Regulation a. Regulated Markets: These are markets which are organized, controlled and regulated by statutory measures. Examples, stock exchanges. b. Unregulated Markets: These are free markets. There is no control with regard to price, quality, commission etc. Demand and supply determine the price of goods. Example, indigenous markets. 6. On the basis of Time a. Very short period market: Market which deals in perishable goods like fruits, vegetables, fish etc. are called 'very short period market'. There is no change in the supply of goods and price is determined on the basis of demand. b. Short period market: When sufficient time is not available for adjusting supply of goods with the demand, it is known as short period market. 7. On the basis of Volume of business a. Whole sale Market: In wholesale markets goods are supplied in bulk quantities to dealers. b. Retail Market: In retail markets goods are sold in small quantities directly to the users or consumers. 8. On the basis of Importance a. Primary Market: The producers of farm products sell their produces through this type of market to consumers or wholesalers. Such markets can be formed in villages and mostly the products arrive from villages. b. Secondary Market: In this market commodities arrive from other markets and the dealings are commonly between wholesalers and retailers or between wholesalers. c. Terminal Market: The ultimate consumer gets the goods from such markets. Here the final disposal of goods takes place. It is the market for manufactured goods.