A market is any place where the sellers of a particular good or service can meet with the buyers of that

goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for there to be a potential transaction.

There are various dimension of a market. Any market can be classified on the basis of the following criteria:
I.

On the basis of degree of competition: Prefect Markets Imperfect Markets

 Prefect

market A market is said to be perfect when all buyers and sellers are properly ware of the prices at which transaction takes place. Any buyer can buy from any sellers. The principals of perfect market : o There must be a uniform price for any one standardized commodity at a particular time at one place. o There should not be restriction on the movement of the commodity. o There must be good number of buyers and sellers.

 Imperfect

markets It is a type of market where buyer and seller are not aware of the offers made by the others. There is restriction for the movement of goods. Imperfect markets are classified into following type: o Monopoly market It is a market situation where there is only one seller of a commodity o Duopoly It has two seller of a commodity in the market. o Oligopoly In this market there are more than two but still less a few sellers of commodity.

2. On the basis of nature of transaction: The market can be divided into two kinds on the basis of nature of business transaction:
Spot

market: The spot market is a ready market where the sellers on the spot physically hand over goods to the buyers. There is an exchange of goods for money at the same time. Future market: It is a market in which the buyers and sellers make agreement for delivery of goods in future. The contract is made on a certain date but the goods will be delivered in future.

3. On the basis of volume of transaction: The market can be divided into two kinds on the basis of volume of business transaction.
Wholesale

market : It is the market where the middlemen buy the goods in bulk form the producers and manufacturers. Retail market: It is that market where goods are sold in small quantity directly to the consumer.

4. On the basis of area: A market can be divided into the following four kinds on the basis of area. Village market: Buying and selling activities are done among buyers and sellers of the village or near by village mostly for perishable commodities. Local market: The local market is a place for the purchase and sale of different goods within the city. The buyers and sellers of one city assemble to buy and sell. Regional market: It consists of many cities and districts of a particular area. The buyers and sellers of different villages, cities and districts assemble to buy and sell the different commodities.

 National

market: It consists of the whole area of country. The buyers and sellers from all over the country take part in buying and selling. International market: It consists of the whole world. The buyers and sellers from the whole world meet and exchange their foods and services. The commodities can be bought and sold at different places in the world. Commodity market: It is a market where the different types of commodities are bought and sold. The wheat, rice, etc are the commodities that are exchanged by the buyer and sellers.

On the basis of number of commodities General markets: In these markets almost all types of commodities such as foodgarins, oilseeds, gul,fiber crops etc. are brought and sold. Specialized markets: In these market transaction take place only in one or two commodities for every group of commodities, separate market exist e.g. Wheat market at hapur, gunny cloth or bags trading at Calcutta.
5.

On the basis of time (time span) Very short period market These are for few hours and are mostly for highly perishable commodities like fruits, vegetables, fish etc. Short period markets Here some attention is paid to adjust supply to meet demand. commodities are non perishable or less perishable and can be traded for some time. e.g. food grains and oilseeds Long period markets Time span available is long to adjust supply to meet demand even by managing for production under such circumstances supply governs demand factor in the long run. E.g. machinery production vehicles, manufactural goods.
6.

7. On the basis of position of seller: A market can be divided into the following three kinds on the basis of position of seller.
Primary

market This is the market where the producers of goods sell their farm products to the wholesalers and their agents. Secondary market This is the market where the wholesalers sell their goods to the retailers for onward selling to the consumer. The middlemen buy goods from producers and manufacturers and sell to the retailers. Terminal market It is the market where goods are purchased for final use or consumption. The retailers sell their goods to consumers.

8. On the basis of nature of commodities a) Commodity markets o Produce exchange market: there are big and well organized markets for raw produce observed in cities. Commodities are produced and manufactured. Generally deal in one type of product. E.g. cotton exchange market Bombay. o Manufactured goods market: These are markets of manufactured and semi-manufactured goods. E.g. leather exchange market at Kanpur. o Bullion market: these markets are concerned with purchase and sale of gold, silver and precious stones. These are highly specialized.

b)
o

Capital market
Money market: It is a market where the financial institutions deal in money. The banks and financial institution are engaged in borrowing and lending of funds.

Stock exchange market: It is a market where shares and debentures of different companies are bought and sold.

9. On the basis of stage marketing Producing market These markets are mainly engaged in distribution of goods for production purpose. They are located in producing areas. E.g. trading of gunny bags and cloth is done in Calcutta. Consuming market Here produce is collected for final disposal to the consuming population these market are located in thickly populated area.

10. On the basis of extent of public intervention Regulated market A regulated market or controlled market, is the provision of goods or services that is regulated by a government appointed body. It is common for a regulated market to control natural monopolies such as aspects of telecommunications, water, gas and electricity supply. Unregulated market A free market is a market in which there is no economic intervention and regulation by the state, except to uphold private contracts and the ownership of property. It is the opposite of a controlled market, in which the state regulates how goods, services and labour may be used, priced, or distributed.

Made by: Ishita Ohri Karishma Mukta Jain Sarang Singla