Meaning of Market and Market Function

By: EconomyWatch   Date: 23 November 2010

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Introduction

It is very important to know the Meaning of Market closely. A market is a place which allows the purchaser and the seller to invent and gather informations and lets them carry out exchange of various products and services. In other words the Meaning of Market refers to a place where the trading of goods take place. The place can be a market place or a street market.

Market Functions

In order to understand the Meaning of Market the market function is an important issue to delve into. The market function is there so that the satisfaction of the buyers and sellers during a transaction can be ensured.. The market generally depends on the adjustments of the price so that it can inform the participants involved in a transaction. This is done so that both the buyer and the seller are well informed and can bargain the right price out and satisfy themselves somewhat. Another main function of the market is to keep the prices under check and control fluctuations in supply and demand to reach allocative efficiency.

Various Types of Markets

Although there are many kinds of traditional markets that exist like flea market, there can also be found various types of them and with different institutional body to its functions.

A market can be organized in many ways. Some of them are:

  • As auctions
  • A complex institution like Stock Market
  • Shopping Complex
  • Intimate discussion between two or more personalities.

    Rules and means of transactions

    To understand the Meaning of Market one should know the rules and regulations of the market. A market is normally governed by the laws of the state the market belongs to. Most markets make transactions through currency or something equivalent to money. It should not be forgotten though that barter markets also exist.
    One can find various types illegal markets which actually harm the economy of a country, like markets which provide pirated goods.


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