• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
 
THE MARKET 
Definition of Market
:-A market is a place where goods are bought and sold.
Explanation:-
So we can say that it is a place where buyers and sellers meet each other directly or through agents and brokers. It bridges the gap between the buyers and sellers and provides a platform for buyers to buy their desired goods and sellers to locate and find buyers.
Effect at Market:-
The most important fact about the market is its being extremely sensitive to political,economical, social, business, technological, and other forces working not only withinthe country but also foreign countries around the world. It may steeply fall or rise onthe news even rumor, or any expected or unexpected happening, such as instability or a change of a government, economic data, annual budget, changes in petroleum product prices, imposition of new taxes or withdrawal of old taxes.
 Nature of Markets:-1) Ready Market2) Future Market1) Ready Market
A market may be ready market where goods are bought and sold for readydelivery/spot delivery without speculation.
2) Future Market
A market may be a speculative market where goods are bought and sold for futuredelivery with a view to gaining through speculation.e.g. Stock Exchange, Cotton Exchange, Bullion Exchange.
 
Kinds of Market:-1) Capital Market2) Commodity Market1) Capital Market
It is a market that deals in finance. It provides a place where capital is mobilized,offered and invested.Capital is made available in the form of short term, long term, secured and unsecuredloans, owner equity in the form of capital and shares and retained earning.It has following types:-
a)Stock Market b)Money Marketc)Foreign Exchange marketa) Stock Market
Market deals in long term capital in the forms:---Share Capital. (Shares, Stock) --long term loans, bonds, debentures.
 b) Money Market
This Market provides short term finance to the commercial and business concerns.Such as overdrafts, letter of credit, bill of exchange, promissory notes.Sources of such finance are commercial banks, cooperative societies.
c) Foreign Exchange market
 This market deals in foreign exchange.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...