Defining the market, its founding elements and its types

Definition of the market in general:
Linguistically, the market means the place to which goods and goods are brought for sale and purchase, and technically it is defined as the place where two parties meet; One of them is concerned with selling specific goods and products or providing a service, and the other is intended to buy these goods and services. The market is defined as the place where securities are traded, so it is called the stock market.

Definition of the market in economics:
The definition of the market in economics differs from the general definition associated with the place of selling goods and services, as it is defined economically as a group of transactions of buying and selling goods, and the formation of their price based on a countless number of decisions, as these decisions depend on two main factors working together, which are as follows: the producing party For the commodity: It is the one who controls the supply price in the market. The consumer of the commodity: which in turn controls the demand price in the market.

The geographical scope determines the nature of the economic market, as it varies if the economy is rural, or the economy is at the level of a country, or the financial status of a particular region, or the level of the international economy.

Defining the market in business:
The market is defined in the field of business as the groups of individuals or organizations that constitute the group of actual and potential customers for the goods and services provided by businessmen, as these groups are divided into one or more of the following categories:
Geographical, demographic, socio-economic, psychological, behavioral or sectoral category.

Defining the market in the new institutional economy:
The market is defined from the new institutional economic perspective as a mechanism of action or a type of existing institution to facilitate the exchange, coordination, and allocation of resources, goods, and services between buyers and sellers and between producers, intermediaries, and consumers, and these markets may be an imperfect institution, and of a competitive nature. It is highly efficient so that it provides effective coordination of the market mechanism, encourages business development, and seeks to achieve economic goals on a broader level by reducing the cost and risks of executing transactions.

Market building elements:
The formation of the market requires a set of elements that complement each other, as follows: Buyers: They are the group of people who expect to satisfy their wants and needs in the market. Purchasing power: It is the main motive that turns buyers’ desires and needs into effective demand. Sellers: They are the group of people who offer their goods and services, and in return, they expect to get a material return so that this return provides the revenues necessary to cover production costs and make a profit. Means of communication: There must be means of communication between buyers and sellers, which provides the goods and services offered for sale. Balance in knowledge: The existence and continuity of the market require a balance of knowledge between buyers and sellers by avoiding withholding relevant information in the purchase process so that the other party is not exposed to partial exploitation. Means of Exchange: It facilitates the exchange process between the two parties; Such as cash, credit cards, etc. Deferred payment: It is a service provided by the market to the buyer, which allows him to pay later. The legal system aims to protect the transactions between the seller and the buyer, and these laws include civil law, such as contracts, or criminal law, such as anti-theft laws. The financial system: The financial plan aims to enable individuals and companies to obtain loans when they need them or to save if they have more money than they need. Ownership Rights: Ownership rights secure the right for the seller to sell his goods and services and the right to the buyer to purchase his needs and own what he has bought.

Market types:
The market is classified into several types, as follows:
1- The black market
It is an illegal market, and it means a call in which transactions are carried out without the knowledge of the authorities or other regulatory bodies.
2- Auction Market
It is the market in which many people gather to buy and sell many goods, and what distinguishes it is the bidding process between buyers; To give the highest price for the offered merchandise, the delivered items are sold the highest bid.
3- The financial market
It is the place where two parties exchange foreign securities, currencies, and bonds, and this type of market is the basis of capitalist societies because it provides a source of capital formation and liquidity for companies.
4- The physical market
It is where buyers can meet the sellers and buy the goods required of them for money, and examples of this type of market are shopping centers, stores, and retail stores.
5- Intangible market
It is also called the virtual market, and it is the market in which sellers offer goods and services online, so buyers cannot see them in their physical form or interact directly with the seller.
6- Intermediate goods market
It is the market devoted to selling commodities in the form of raw materials used for the final production of other items.
7- Knowledge Market
It is a group of people who exchange information and knowledge-based products.

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