Market

A market is a place where buyers and sellers are in contact with one another for the purpose of buying and selling.

Markets advertise or promote (something). Market is a regular gathering of people for the purchase and sale of provisions, livestock, and other commodities. It is an area or arena in which commercial dealings are conduct.

Market is a means by which buyers and sellers are brought into contact with one another for the purpose of buying and selling.

Examples of markets are the local markets with stalls, covered markets, shops and shopping mall, complexes which are located at big towns. Such markets include Agege market at Lagos, Gbagi market at Ibadan, etc.

1. Factors To be considered before establishing a market

The points below are important factor for a market to exist

• There must be goods and services
• There must be a buyer or buyers
• There must be a seller or sellers
• There must be a medium of exchange (money)

1. Types of Market

Types of market are listed below

1. Financial market: Financial markets are markets for borrowers of money and lenders of money for the purpose of aiding trade. Financial markets include the following

• Money market: it is an institution that made money available for commercial purposes. Examples of money markets are: commercial banks like First bank, GTBank, Wema bank etc, merchant bank etc.
• Capital market: Market for raising more money for business purposes. It is a market where shares are bought and sold. Example: stock exchange market.

2. Commodity Market: Commodity market are markets for raw materials which are used either for food or inputs, it is also a market for finished products like cars, television, books etc.

Commodity market can be classified into three:

• Open air market: It is the common market usually found in the villages and cities of West African Countries. Here sellers display their goods in the open air. In this market, goods are cheap at the open market because sellers do not pay for space but only pay a token to the local government as tax
• Market stalls: Stalls are some enclosures or rooms which usually have open fronts for the display of wares. They may even be kiosks or stands within large walled area, usually in big towns and cities.
• Shop: A shop may be a single room in a building, a number of shops in a location called a shopping centre for buying and selling.

Test and Exercise

• —————– is a means by which buyers and sellers are in contact for the purpose of buying and selling (a) market (b) house (c) office (d) farm
• Types of commodity market are the following except (a) financial market (b)open air market (c)market stalls (d) shop
• All the following factors affects the existence of market except (a) There must be goods and services (b) there must be a buyer or buyers (c) there must be medium of exchange (d) there must be a thief
• A market where goods are display in the open air is called (a) market stalls (b) shop market (c) open air market (d) all of the above
• A market goes beyond a venue of selling and buying. Yes/No