what is market and the various types of market

            DEFINITION OF MARKET

What is market? A market may be defined as any system or arrangement by which persons and institutions are brought into contact to exchange goods and services.

  • explain the concept of the market and distinguish it from the market place.
  • Distinguish between perfect and perfect markets by being able to identify their features.
  • Draw graphs to illustrate price and quantity determination under
  • Perfect competition
  • Monopoly
  • Oligopoly

 In other words, a market is a point of place of any means of communication whereby sellers and buyers can communicate with one another, to exchange goods and at prices determined by the market forces.

TYPES OF MARKET

Market can be grouped on the basis of the type of commodities purchased and sold or on the

the channel of movement of finished products from the producers to consumers, or  on the basis or prices.

Types of market according to commodities sold in them.

  • Money market: Money market is the type of market tor short term loan. It consists of Institution or individuals who either have money to lend or wish to borrow on a short term basis.
  • Capital market: Capital market is a market for medium term and long term loans. It serves the needs of industries and commercial sector. It comprises all institutions which are concerned with either the supply of or demand for long term loan.
  • Consumer goods market: Consumer goods market is the type in which finished products ready for use by consumers are sold and bought.
  • Primary products market: This is the type of market in which primary products in their raw forms are sold and bought. Factor market: This is the type of market in which the factors of production are sold and bought.
  • Factor market: This is the type of market in which the factors of production are sold and bought.
  • Foreign exchange market: This is a market which deals with foreign exchange transactions and it involves the buying and selling of foreign currencies.
  • Labour market: Labour market is the type in which workers and employers are in close contact for the purpose of rendering services.
  • Stock exchange market: This is a market where investors can buy and sell existing securities like shares, stock and debentures. That is, it is a market where those who are interested in the purchasing of securities are brought into contact with the sellers.

Types of market according to channel of distribution

  • Wholesale market: This is the type of market in which a trader called wholesaler buys commodities in large quantities from the manufacturer and sells in small quantities to the retailer

  • Retail market: This is the type of market in which a trader known as a retailer buys commodities from the wholesaler and sells in bits to the final consumer.
  • Types of market according to price

The types of market based on the prices of commodities are grouped into two: prefect market and imperfect market.

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