2012 AUTUMN SEMESTER
ECONOMICS LECTURE REPORT
MARKET AND ITS PERFORMANCE : MAIN ELEMENTS AND FUNCTIONS
TEACHER: EDITOR:
Assoc Prof Yalcin BORLU
Rasa ZABARAUSKAITE
CONTENTS
1) What’s a Market? 3 2) Types Of Markets 4 1. Financial Markets 4 1. Stock Market 4 2. Bond Market 4 3. Foreign Exchange Market 4 4. Predictive Markets 4 2. Physical markets 4 3. Virtual Markets 5 4. Auction Market 5 5. Market for Intermediate Goods 5 6. Black Markets 5 7. Knowledge Market 5 3. Organization Of Markets 5 4. Mechanisms of Markets 6 5. Study of Markets 7 6. Size Parameters 8 Sources 8
1) What’s a Market? A market is one of many varieties of systems, institutions,
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1. Stock Market A form of market where sellers and buyers exchange shares is called a stock market. 2. Bond Market
A market place where buyers and sellers are engaged in the exchange of debt securities, usually in the form of bonds is called a bond market. A bond is a contract signed by both the parties where one party promises to return money with interest at fixed intervals. 3. Foreign Exchange Market In such type of market, parties are involved in trading of currency. In a foreign exchange market (also called currency market), one party exchanges one country’s currency with equivalent quantity of another currency. 4. Predictive Markets
Predictive market is a set up where exchange of good or service takes place for future. The buyer benefits when the market goes up and is at a loss when the market crashes.
2. Physical markets Physical market is a set up where buyers can physically meet the sellers and purchase the desired merchandise from them in exchange of money. Shopping malls, department stores, retail stores are examples of physical markets. 3. Virtual Markets
In such markets, buyers purchase goods and services through internet. In such a market the buyers and sellers do not meet or interact physically, instead the transaction is done through internet. Examples - Rediff shopping, eBay etc. 4. Auction Market In an auction market the seller sells his goods to one
Claims that many people are now able to shop products such as e-books, songs and films using their computers while in the comfort of their offices and homes. Similarly, the Online Age has also permitted suppliers to conveniently public auction their products by basically posting advertisements on the particular sites of the on the internet marketplaces. Consequently, this has considerably totally changed and transformed the scope of distant item sales to a point where the consumers may not necessarily know each other during the promoting of products. Sites such as Amazon, Ebay, and Etsy are examples of this type of
A stock market is the network of buyers and sellers. It is also a stock exchange. The Dow Jones Industrial Average is an example of a stock market.
| The hypothesis that market prices reflect all publicly available information is called efficiency in the:Answer
1. the market where business sell goods and services to households and the government is called
Financial markets can have several different meaning to many people. They are found all over the world. Some are small and some are large. For example, the New York Stock Exchange, which trade trillions of dollars daily. A financial market is a place where buyers and sellers trade financial securities and other assets.Here, the groups of agents meet to exchange their goods or services. The first group is referred to as lenders, while the second group is referred to as the borrowers of funds. Financial markets typically have “transparent pricing, basic regulations and governing bodies, costs and fee and prices determine by supply and demand.” If the demand remains steady, the supply increases as the prices decline and vice versa. If the supply remains steady, the demand rises as the prices rises and vice versa (Ireland, 2013).
"Market refers to an arrangement, whereby buyers and sellers come in contact with each other directly or indirectly, to buy or sell goods."
The share or stock market is a virtual marketplace where shares of registered companies are sold and bought. Apart from shares, other market products such as mutual funds, bonds, derivative contracts, etc. are also traded. The share market can be divided into two types. The types of share market are explained below.
It is often a cost-effective alternative for SMEs because those e-marketing places charge a small fee relative to the price of the products which setting by seller and the items are sold directly to consumers. Seller can set up a web store and display a list of product with fully descriptions and specification to help customers understand the product details before purchasing. Customers can also compare the prices of similar products provided by different merchants and search for the best price easily. Furthermore, they can order products anytime, even after office hours. The e-marketing places have their own online trading tools, such as Taobao’s ‘Alipay’, eBay’s ‘Escrow’ for easy online transaction. Customers can post reviews after received the products and potential customers can study these reviews before buying a
A company needs funds to expand into new markets, while governments need money for everything from infrastructure to social programs. The problem large organizations run into is that they typically need far more money than the average bank can provide. The solution is to raise money by issuing bonds (or other debt instruments) to a public market. Thousands of investors then each lend a portion of the capital needed. Really, a bond is nothing more than a loan for which you are the lender. The organization that sells a bond is known as the issuer. The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills.
Market failure is the market cannot efficiently allocate goods and services. Only completely competition market mechanism is the most efficient market mechanism, in addition to this, others are all included in market failure. And in actuality, because of various of factors, it cannot obtain the completely competition market mechanism and produce the loss of efficiency (MacKenzie, 2002).
The present study proposes to test the potential impact of the market’s reaction to merger announcements. Mergers & Acquisitions have long been used as tools for expansion into newer markets, products, segments and opportunities to jumpstart growth for companies that have seen growth plateaued after a point in time. Large corporations use mergers and acquisitions as means to enhance growth given that growth in some of these markets tends to be muted and M&A is seen as means to an end. Whether acquirers benefit from mergers and acquisitions has been a matter of constant debate. However, the acquired companies generally tend to benefit from the acquisition with the shareholders receiving handsome premiums on the listed price especially if there are more than one bidders in the fray and it goes into a bidding war.
Provide continuous bidding (selling and buying) for the security by holding inventories of securities. No central trading location NASDAQ best known example of a dealer market
An online marketplace (or online e-commerce marketplace) is a type of e-commerce site where product and inventory information is provided by multiple third parties, whereas transactions are processed by the marketplace operator. Online marketplaces are the primary type of multichannel ecommerce.
iii)E-shopping:-E-shopping basically used via E-commercial website. These websites are open 24 hours. This is basically known as outline market.
Virtual Markets, in the context of Agriculture Marketing, may be defined as, “an electronic market, which enables producers and buyers in the supply chain to access each other spread across the country, with a view to transact at the most efficient and transparent prices, thereby