What is the meaning of Market? Concept, Definition of Market

Definition of market

On this website you will find one or more meanings in your language for the word or expression: market. As well as definitions of Wikipedia pages and other Web pages related to the word market and, of course, synonym of market with appropriate images related to the use of this expression.

1. Concept of market

Market is made up of one of the economic activities more important made by humans throughout the ages: trade. When we talk about market we refer to the fact that these commercial activities are regulated and organised since they are not made on an individual basis if not which always involve the participation of a significant number of people. The concept of market can be understood in several ways, for example when speaking of the physical place in which happen all these commercial acts or as a general activity that encompasses a multitude of simultaneous trade.
Today the market is main world economic activity since it is that connects all societies among themselves regardless of the type of Government, religion, culture or way of life that lead. The market is, precisely, the economic activity more dynamic because it allows different groups and societies come into contact with other realities that not only enrich your life with different products and varied if not that also allows data and particular elements of other cultures, even sometimes very far.
The market is also extremely important in what refers to economic policies that vary from leaving all RID to the laws of the market to keep it controlled and dominated from the State crisis, emergency, etc. While the liberal positions always sought to defend the free market and limiting State or Government interference in economic activities, positions such as communism, socialism or nationalism pose greater interference by the State to regulate trade laws and establish an organized and controlled market. In any case, both prove that the role of national and international markets are now Center of not only economic arguments but also political and social.

2 Meaning of market

In economic terms, is told market to the stage (physical or virtual) where a regulated set of transactions and exchanges of goods and services between parties takes place buyers and parts sellers that implies a degree of competition among the participants from the mechanism of supply and demand.
There are different types of markets: as retailers or wholesalers, the raw materials and the of intermediates, and also markets shares or stock exchanges.
Throughout history have been formed different types of market: the first running through barter, i.e. the direct exchange of goods through the valorisation of the same. This system governed the economy European for much of its history, although the circuit coexisted with the use of gold and silver coins. With the emergence of money in a modern format (in coins and notes, such as they were used by the Mongol Empire and medieval China, with import of the idea to Europe in times of Marco Polo) gave rise to transactions through codes of trade both nationally and internationally, using communications and increasingly complex intermediaries. The current economic model requires a complicated interrelation that intersect different national currencies, bonds, local and international systems, stock market circuit and movements of customs, import and export between countries and trading blocs.
A market of free competition is ideal when there are so many interrelated economic agents that none can interfere with certainty about the final price of a good or service; then, said the market is self-regulating. This principle is supported by liberalism emerged in modern and contemporary times and is the most widely used market system in developed nations.
When there is (a single producer) monopolies or oligopolies (small number of producers), the system enters tension and are called imperfect competition market, as producers are large enough to have an effect on prices. Socialist and Communist economic systems are based on a producer/effector only (State); the risk of totalitarianism is very high in these cases. In contrast, there are models of market in which the State is not the only agent involved, but it acts as a regulator or modulator of the activity. This method is applied with varying degrees of success in many countries and multinational institutions.
Perfect competition market not only has a large number of sellers and sellers that prevent the influence of each on the final price, also has homogeneity of the product, market transparency, freedom of entry and exit of companies, free access to information and resources and benefit equal to zero in the long run.
When the market fails in achieving economic, for example efficiency, because the provision that makes a good or service is not effective, it is said that one of the so-called "market failure" occurs. These seizures can occur for different reasons. When any of the components that constitute a market (producers, State, consumers, importers, exporters...) it is not properly administered or occupies a role which is unable to cope with, market failures may precipitate major changes in people's lives. It is therefore interesting to postulate that the market is not in itself a good or bad entity, but its management and regulation for the common good will be which define if financial movements have a satisfactory outcome for the society as a whole.

3. Market definition

From the latin "mercari", the market word means buy, and applies to the operations of purchase and sale of goods, regulated as a commercial activity.
In Rome every nine days took place a festival called market day, which was performed at the Forum, where came the peasants to carry out the exchange of their products.
The market is a type of social organization that enables the exchange of goods or services for money, although the first commercial exchanges were made through the Exchange or barter. We speak not only of the market when we buy and sell things, as it is the case with the fruit and vegetables market, real estate market, automotive market, the textile market, etc but that there is a labour market, one financial market, among others. The market may be national, within the boundaries of each State or international when done between countries.
Also it may be called the demand for a good or service specific market. In this sense refers to a market study for potential clients of any good destined for sale, to know if the launch of our offering to the public (when you put our product on the market) will be buyers.
There are markets of free competition where the game of supply and demand is unrestricted, and the competition is full, and others dominated by a single vendor (monopoly), or few (oligopoly), eliminating free competition.
Black market is one where the purchase sale is done illegally.