Market
A market is a place where buying and selling of goods and services are done by the buyers and sellers. A market can also be defined as an institutional arrangement whereby the buyers and sellers come in contact to exchange goods and services. The manufacturer buys raw materials and sells finished goods.
Types of Market
There are several types of market but there are basically three types of market operating in this country. They are;
a. The commodity market
b. The capital market
c. Foreign exchange market
Commodity Market
This refers to a kind of market where people buy and sell their commodities. Commodities are the essential raw materials by industries, commercial and the final consumers. The commodity market provides the opportunity for buyers and sellers to discuss the price of products being offered for sale.
1) Open Market: This is a market where basic commodities such as food stuff, goods, and raw materials are displayed in the open air. Goods here are sold at cheaper rate. These markets are operated on daily, bi-weekly or weekly basis.
2) Stall Market: Stalls are apartments; small room, kiosks or stands, sometimes locked up but usually open fronted, erected in large walled area in open markets which are hired out to individual traders for the display and sales of their goods.
3) Shops: A shop is a room where goods are displayed for sales. Shops are established in non-specific places. It can be said that a shop is a market because it is a place where buyers and sellers meet to exchange value.
Capital Market
The capital market is a place where manufacturing and retailing companies add to their capital base for doing business. Capital market is also called financial market. The capital market is different from the commodity market because only stocks and shares are bought and sold instead of goods.
Foreign Exchange Market
The foreign exchange market is a kind of market whereby the value of one currency is negotiated against another country’s currency. The market exists to help Nigerian manufacturers who would need raw materials from other countries to obtain another currency from the Nigerian bank. The foreign money market is not open to everybody but only to the central bank, commercial banks and authorised organisations.
Tests and Exercises
1. ……… is a market where basic commodities such as food stuff, goods, and raw materials are displayed in the open air. a. Shops b. Capital market c. Open market d. Stall market. Answer: Open Market
2. The following are types of market except ………… a. Open market b. Commodity Market c. Foreign Exchange Market d. Capital Market. Answer: Open market
3. ………. is a room where goods are displayed for sales. a. Shops b. Capital market c. Open market d. Stall market. Answer: Shops
4. ……… is a place where buying and selling of goods and services are done by the buyers and sellers. a. an office b. an organisation c. an arena d. a market. Answer: A market
5. ……. is a kind of market whereby the value of one currency is negotiated against another country’s currency. a. Open market b. Commodity Market c. Foreign Exchange Market d. Capital Market. Answer: Foreign Exchange Market
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