Monday October 19, 2020

Market
Learning Objectives:
Define the term market
List the features and types of a market
List the institutions an instrument traded in the types of market
Mention the career opportunities available in the capital market

Keywords
Exchange
Currency
Trade

Market
Market is the coming together of people for the purpose of trade, purchase or sale of goods and
services. This means that a market exists in any place where people have gathered to buy and sell.

A market can also be defined as an institutional arrangement whereby the buyers and sellers come in
contact to exchange goods and services.

Types of Market
Commodity market
The capital market [stocks and shares]
Money market
Foreign exchange market
Commodity market
Commodity market is a market where raw materials also known as primary products are bought and sold.
Manufacturers who need raw materials go through marketing system to obtain them. Raw materials such
as groundnut, rubber, cocoa, crude oil is sold in commodity market

Forms of commodity market

Open Market: This is a market where basic commodities such as food stuff, goods and raw
materials are displayed in the air. These markets are operated daily, bi-weekly or weekly basis.

Stall Market: Stall are apartment; small rooms, kiosk or stands, sometimes locked up but
usually open-fronted, erected in large walled areas in urban centers to enable selling and buying
to take place.

Shop: A shop is a room where goods are displayed for sales. Shops are established in non-
specific places. It can be said that a shop is a market because it is a place where buyers and
sellers meet to exchange value.

Features of A Commodity Market

The open market can be held anywhere once people have agreed to meet to sell and buy commodities.

Stalls are usually located in large urban centers such as kano, Lagos, Benin and Port Harcourt. The shop
is usually located in any part of the city. The shop can be registered as a business

Capital Market
The capital market is a place where manufacturing and retailing companies add to their capital for doing
business. Unlike commodity market, shares and stocks are sold in capital market instead of goods.

Features of A Capital Market

The capital market is both a national and international market. It is open to national and international
agencies.

Money market
Money market is the market for borrowing of money for a short-term period.

Meaning of money
Money is anything which is acceptable as a means of payment for goods and services.
Money can also be defined as a medium of exchange used and accepted in transactions involving the
transfer of goods and services from one person to another.

The naira and kobo are accepted as legal tender in Nigeria because the national assembly approved them
by law as a means of exchange

Foreign exchange market.

Foreign exchange market is a market for the trading of currencies. For example, one may buy dollars or
sell pounds on a foreign exchange market.

The value of one country’s currency is negotiated against another country's currency. The value of the
naira is often negotiated against the American dollar

Institutions and instruments traded in the market

Career opportunities in the capital market
stock brokers
Accounting officers
Computer input analysts
Programmers
Clerical officers, etc.