KINDS OF MARKET ACCORDING TO COMMODITIES

KINDS OF MARKET ACCORDING TO COMMODITIES

This market deals with various commodities which we shall mention in the following sub-headings.

1)      GENERAL MARKET: As the name implies, this type of market deals with general commodities that are daily use, e.g. the provision stores. Here, we can purchase goods such a food items and beverages, stationary, toiletries etc.

2)      SPECIALIZED MARKET: This market only deals with specific products. Only one particular kind of product is sold, and can be purchased here. This kind of market thoroughly specializes in that particular production e.g. pharmacies, electrical shops etc.

3)      CAPITAL MARKET: The capital deals with long-term (monetary) dealings/ transactions. The main function of this market is to deal with the scale and purchase of new securities for the country in general e.g. new bonds, stock, shares etc.

4)      STOCK EXCHANGE: The stock exchange is concerned with short term monetary transactions. It deals the sale and purchase of old bonds and old shares that are being speculated.

5)      FACTOR MARKET: This market deals with the demand for and supply of the factor of production. For example in the case of land. The function of this market is to deal with the sale and purchase of land e.g. those who wish to buy a place of land to build a house on etc. will first have to go through this factor market. Similarly in the case of labour. This factor market deal with the demand and supply of labour. In this case mobility of labour, division etc., is dealt with by the factor market. in the case of capital, this market deals with anything that as to do with money e.g., mobility of capital etc. whereas in the case of entrepreneur. The market deals with cases when a particular firm decides to change its industry due to various reasons.

6)      MONEY MARKET: This type of market deals with financial transaction on a short term basis e.g. if a person decides to open a store or a group of consultants decide to run a firm, the would first have to accumulate money capital. They can do this buy obtaining loans on a short term basis from the money market e.g., commercial banks.

7)      FOREIGN EXCHANGE MARKET: This market plays adominant role in anything to do with foreign exchange. It deals with matters regarding the sale and purchase of foreign exchange, or in other words it deals with foreign exchange on an open demand and supply basis.