A market refers to a place where two parties come together in order to facilitate the exchange of goods and services. These parties are purchasers and sellers. A marketplace can be a retail shop vegetable and buy and sell goods. It could also be an online market where there is no direct physical contact but buying and selling takes place.
Furthermore, the term market also refers to a place where securities are traded. This kind of market is known as the securities market. In a market transaction, goods, services, currency, information and a combination of these elements exist. The market can be in physical locations where transactions are made. Online marketplaces include Amazon, eBay Flipkart, etc. Remember the size of a market is determined by the number of buyers and sellers.
Mentioned below are three main types of markets:
A black market is an illegal market where transactions are made without the knowledge or intervention of government or other authorities. There are many black markets which involve cash only transaction or other forms of currency which makes it harder to track them.
The black market usually exists where the government controls the production and distribution of goods and services. It also exists in developing countries. If there is a shortage of goods and services in Economy, those from the black market step in and fill the gap. Black markets also exist in developed economies. This is mostly true when the prices control the sale of certain services or goods especially when the demand is high. Ticket scalping is an example.
A financial market is a blanket term that refers to any place where currencies, Bonds, securities, etc are traded between two parties. Capitalist societies have these markets as their Basis. These markets provide Capital information and liquidity for businesses and they can be both physical or virtual.
Market include the stock market or exchanges such as the New York Stock Exchange, NASDAQ, LSE, etc. Other financial markets include bond markets and foreign exchange markets where people trade currencies.
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The auction market refers to a place that brings many people together for the purchase and sale of specific products. The buyers try to compete and top each other for the purchase price. Items for sale go to the highest bidder. Some of the examples of common auction markets are livestock and homes website like eBay, etc.