Reviewed by Feb 19, 2021| Updated on
The place where two or more parties interact to exchange goods or services is called the market. The parties involved in such an interaction are known as buyers and sellers. The market can be online where there is no physical contact, face-to-face where the buyer comes to seller to buy any product or receive any service.
In another terms, the market can also be referred to the place where securities or commodities are traded. The market establishes the prices of goods and services that are determined by the supply and demand.
Markets are widely categorised on the basis of the kinds of products sold, services rendered, location, duration, consumer base, legality and size. Apart from these two common markets, physical and virtual- where parties interact to execute their transactions, there are some other kinds of markets. Let's discuss them briefly:
The market specifies prices of the goods and services offered there. These prices are determined by the supply and demand. Buyers create demand and sellers create supply. Markets tries to find a balance in price while there is a balance between the supply and demand. However, sometimes the balance is disrupted by the factors like expectations, technology, the cost and the buyer & seller base. Once the balance in price is found, the product or the services are sold.