Markets - Basics - Definitions - Types - Structures - Microstructures - History

http://www.1mtx.com/markets-trades/en/index.php?language=en&menu=MARKETS&punkt=Basic&punkt2=Market&index=Basics#MarketBasics Market: In economics, the concept of a market is any structure that allows buyers and sellers to exchange any goods, services and information. Market: Definitions - Basics In economics, the concept of a market is any structure that allows buyers and sellers to exchange any goods, services and information. A market consists of all the buyers and sellers of a good who influences its price. Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... The exchange of goods or services for money is a transaction. A market consists of all the buyers and sellers of a good who influences its price. This influence is the objective of economists and has given rise to several theories and models in economics concerning the basic market forces of supply and demand. ... Latest Updates... Latest Datas: International Markets & Indices Latest Updates... ...There are two roles in markets, buyers and sellers. The definition implies that at least three actors are needed for a market to exist; at least one actor, on the one side of the market, who is aware of at least two actors on the other side whose offers can be evaluated in relation to each other. The market facilitates trade and enables the distribution and allocation of goods and services in a society. Markets allows any tradable item to be evaluated and priced. Definitions: Market Market: ...a store or shop that sells a particular type of merchandise: ...a vegetable market. 1. A public gathering held for buying and selling merchandise. 2, A place where goods are offered for sale. 3. A store or shop that sells a particular type of merchandise: a vegetable market. 4. a) The business of buying and selling a specified commodity: the soybean market. 4. b) A market price. 4. c) A geographic region considered as a place for sales: grain for the foreign market; the Chinese market. 4. d) A subdivision of a population considered as buyers: cosmetics for the upscale market. 5. The opportunity to buy or sell; extent of demand for merchandise: a big market for gourmet foods. 6. a) An exchange for buying and selling stocks or commodities: securities sold on the New York market. 6. b) The entire enterprise of buying and selling commodities and securities: The market has been bullish recently. Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Types of Markets A market emerges more or less spontaneously or is constructed deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of services and goods. Although many markets exist on the traditional sense -- such as a flea market -- there are various other types of markets and various organizational structures to assist their functions. A market can be organized as an auction, as a private electronic market, as a shopping center, as a complex institution such as a stock market, and as an informal discussion between two individuals. In economics, a market that runs under laissez-faire policies is a free market. It is "free" in the sense that the government makes no attempt to intervene through taxes, subsidies, minimum wages, price ceilings, etc. Market prices may be distorted by a seller or sellers with monopoly power, or a buyer with monopsony power. Such price distortions can have an adverse effect on market participant's welfare and reduce the efficiency of market outcomes. Also, the level of organization or negotiation power of buyers, markedly affects the functioning of the market. Markets where price negotiations do not arrive at efficient outcomes for both sides are said to experience market failure. Most markets are regulated by state wide laws and regulations. While barter markets exist, most markets use currency or some other form of money. Markets of varying types can spontaneously arise whenever a party has interest in a good or service that some other party can provide. Hence there can be a market for cigarettes in correctional facilities, another for chewing gum in a playground, and yet another for contracts for the future delivery of a commodity. There can be black markets, where a good is exchanged illegally and virtual markets, such as eBay, in which buyers and sellers do not physically interact. There can also be markets for goods under a command economy despite pressure to repress them. » black markets (Modern examples) » Marketplaces and street markets » Supermarkets (History) Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Market Structures (Market Forms) In economics, market structure (also known as market form) describes the state of a market with respect to competition. 1. Perfect competition, in which the market consists of a very large number of firms producing a homogeneous product. 2. Monopolistic competition, also called competitive market, where there are a large number of independent firms which have a very small proportion of the market share. 3. Oligopoly, in which a market is dominated by a small number of firms which own more than 40% of the market share. 4. Oligopsony, a market dominated by many sellers and a few buyers. 5. Monopoly, where there is only one provider of a product or service. 6. Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. 7. Monopsony, when there is only one buyer in a market. The imperfectly competitive structure is quite identical to the realistic market conditions where some monopolistic competitors, monopolists, oligopolists, and duopolists exist and dominate the market conditions. The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition,oligopoly, and pure monopoly. The main criteria by which one can distinguish between different market structures are: the number and size of producers and consumers in the market, the type of goods and services being traded, and the degree to which information can flow freely. Quick Reference to Basic Market Structures Market Structure Seller Entry Barriers Seller Number Buyer Entry Barriers Buyer Number Perfect Competition No Many No Many Monopolistic competition No Many No Many Oligopoly Yes Few No Many Oligopsony No Many Yes Few Monopoly Yes One No Many Monopsony No Many Yes One » Perfect competition (Perfect competition - Criticisms - Results - Examples) » Monopolistic competition (Definition - Problems - Examples) » Oligopoly (Description - Demand curve - Oligopsonies - Examples) » Monopoly (Economic analysis - The "natural monopoly" problem - Historical monopolies - etc) » Monopsony (Overview - Static monopsony in a labor market - Problems - etc) Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Market Microstructures Market Microstructures is a branch of finance concerned with the details of how exchange occurs in markets. While the theory of market microstructure applies to the exchange of real or financial assets, more evidence is available on the microstructure of financial markets due to the availability of transactions data from financial markets. The major thrust of market microstructure research examines the ways in which the working processes of a market affects determinants of transaction costs, prices, quotes, volume, and trading behavior. Maureen O’Hara defines market microstructure as "the study of the process and outcomes of exchanging assets under a specific set of rules. While much of economics abstracts from the mechanics of trading, microstructure theory focuses on how specific trading mechanisms affect the price formation process." The National Bureau of Economic Research has a market microstructure research group that, it says, "is devoted to theoretical, empirical, and experimental research on the economics of securities markets, including the role of information in the price discovery process, the definition, measurement, control, and determinants of liquidity and transactions costs, and their implications for the efficiency, welfare, and regulation of alternative trading mechanisms and market structures." Microstructure deals with issues of market structure and design, price formation and price discovery, transaction and timing cost, information and disclosure, and market maker and investor behavior. » more (Market structure, design - Price formation, discovery - Transaction cost and timing cost) » Maureen O'Hara (Professor Maureen Patricia O'Hara is an American financial economist - johnson.cornell.edu) Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top History Trade and markets originated with the start of communication in prehistoric time. Trading was the main facility of prehistoric people, who bartered goods and services from each other when there was no such thing as the modern day currency. Markets and trade is believed to have taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the stone age. Materials used for creating jewellery were traded with Egypt since 3000 BCE. Long-range trade routes first appeared in the 3rd millennium BCE, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, travelling across the Mediterranean Sea, and as far north as Britain for sources of tin to manufacture bronze. For this purpose they established trade colonies the Greeks called emporia. From the beginning of Greek civilization until the fall of the Roman empire in the 5th century, a financially lucrative trade brought valuable spice to Europe from the far east, including China. Roman commerce allowed their empire to flourish and endure. Their widespread empire produced a stable and secure transportation network that enabled the shipment of trade goods without fear of significant piracy. The fall of the Roman empire, and the succeeding Dark Ages brought instability to Western Europe and a near collapse of the trade and markets network. Nevertheless some trade did occur. For instance, Radhanites were a medieval guild or group (the precise meaning of the word is lost to history) of Jewish merchants who traded between the Christians in Europe and the Muslims of the Near East. From the 8th to the 11th century, the Vikings and Varangians traded as they sailed from and to Scandinavia. Vikings sailed to Western Europe, while Varangians to Russia. The Hanseatic League was an alliance of trading cities that maintained a trade monopoly over most of Northern Europe and the Baltic, between the 13th and 17th centuries. Vasco da Gama restarted the European Spice trade in 1498. Prior to his sailing around Africa, the flow of spice into Europe was controlled by Islamic powers, especially Egypt. The spice trade was of major economic importance and helped spur the Age of Exploration. Spices brought to Europe from distant lands were some of the most valuable commodities for their weight, sometimes rivalling gold. In the 16th century, Holland was the centre of free trade, imposing no exchange controls, and advocating the free movement of goods. Trade in the East Indies was dominated by Portugal in the 16th century, the Netherlands in the 17th century, and the British in the 18th century. In 1776, Adam Smith published the paper An Inquiry into the Nature and Causes of the Wealth of Nations. It criticised Mercantilism, and argued that economic specialization could benefit nations just as much as firms. Since the division of labour was restricted by the size of the market, he said that countries having access to larger markets would be able to divide labour more efficiently and thereby become more productive. Smith said that he considered all rationalizations of import and export controls "dupery", which hurt the trading nation at the expense of specific industries. In 1799, the Dutch East India Company, formerly the world's largest company, became bankrupt, partly due to the rise of competitive free trade. In 1817, David Ricardo, James Mill and Robert Torrens showed that free trade might benefit the industrially weak as well as the strong, in the famous theory of comparative advantage. In Principles of Political Economy and Taxation Ricardo advanced the doctrine still considered the most counterintuitive in economics: When an inefficient producer sends the merchandise it produces best to a country able to produce it more efficiently, both countries benefit. The ascendancy of free trade was primarily based on national advantage in the mid 19th century. That is, the calculation made was whether it was in any particular country's self-interest to open its borders to imports. John Stuart Mill proved that a country with monopoly pricing power on the international market could manipulate the terms of trade through maintaining tariffs, and that the response to this might be reciprocity in trade policy. Ricardo and others had suggested this earlier. This was taken as evidence against the universal doctrine of free trade, as it was believed that more of the economic surplus of trade would accrue to a country following reciprocal, rather than completely free, trade policies. This was followed within a few years by the infant industry scenario developed by Mill anticipated New Trade Theory by promoting the theory that government had the "duty" to protect young industries, although only for a time necessary for them to develop full capacity. This became the policy in many countries attempting to industrialize and out-compete English exporters. The Great Depression was a major economic recession that ran from 1929 to the late 1930s. During this period, there was a great drop in trade and other economic indicators. The lack of free trade was considered by many as a principal cause of the depression, and World War II. During the war, in 1944, 44 countries signed the Bretton Woods Agreement, intended to prevent national trade barriers, to avoid depressions. It set up rules and institutions to regulate the international political economy: the International Monetary Fund and the International Bank for Reconstruction and Development (later divided into the World Bank and Bank for International Settlements). These organizations became operational in 1946 after enough countries ratified the agreement. In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade. » Ancient History (History of International Trade > Chronology of Events: Ancient History) » Middle Ages (History of International Trade > Chronology of Events: Middle Ages) » Early Modern (History of International Trade > Chronology of Events: Early Modern) » Later Modern (History of International Trade > Chronology of Events: Later Modern) Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top » ...more Links ! » more Links Supermarket News ... SN (Supermarket News), the only nationally circulated weekly trade magazine for the food distribution industry. This website keeps readers up to date between weekly issues by posting daily news briefs ... » SN (supermarketnews.com) Links @ Groceteria.com ... Groceteria.com is a site about the history of the American supermarket, from both an architectural and a business perspective. As a general rule, the site covers events and stores of the 1920s through the 1980s. ... » Sources and Links (groceteria.com) Worldwide Online Supermarket ... Welcome to buy on Worldwide Online Supermarket. Buyers can buy all types of product and services from this Shop. Offer Product and Services from 180 countries worldwide. ... » Worldwide Online Supermarket (World's Top and Best Online Store.- Powered By Amazon.co.uk) Free Market ... Free market is a summary term for an array of exchanges that take place in society. Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents. These two individuals (or agents) exchange two economic goods, either tangible commodities or nontangible services. Thus, when I buy a newspaper from a newsdealer for fifty cents, the newsdealer and I exchange two commodities: I give up fifty cents, and the newsdealer gives up the newspaper. Or if I work for a corporation, I exchange my labor services, in a mutually agreed way, for a monetary salary; here the corporation is represented by a manager (an agent) with the authority to hire. ... » Free Market (by Murray N. Rothbard - http://www.econlib.org/library/Enc/FreeMarket.html) STOCKS GLOSSARY A - Z Terms - Definitions - Exchanges TRADES GLOSSARY A - Z Terms - Definitions Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top ...| Reports | Analysis | Opinions | Comments |... | Reports | Analysis | Opinions | Comments | Scrambling for customers The supermarket was born 75 years ago. One-stop shopping has come a long way. It all started with a king. On Aug. 4, 1930, Michael Cullen dramatically changed the retail landscape by introducing the nation's first ever supermarket in Queens, N.Y. He dubbed it King Kullen, inspired by a picture his son drew of a man sitting on top of the world. Read more » (by Pia Sarkar - SFGate.com; August 4, 2005) Farmers' markets Shopping for fresh produce at farmers' markets is a far cry from buying plastic-wrapped goods from supermarkets. ... Farmers' markets, with their emphasis on fresh, seasonal produce and their hands-on approach to shopping, are a magnet for food-lovers. Factor in the shoppers' chances to chat to the growers and possibly pick up a recipe from fellow food-lovers, and you have a formula for food-shopping success. ... Read more » (BBC.co.uk - Food matters) Market traders call for support Traders are asking the public to back their campaign to keep their historic market in Hereford city centre. Traders at the city's Buttermarket fear plans to refurbish Market Hall as part of the major Edgar Street Redevelopment will force them out. ... Read more » (BBC.co.uk, 8 July 2008) A Market Slowdown Still Looms ... The gauge of how strong a particular stock market is can usually be measured by looking at the internals of the market - such as using breadth and volume, etc. As a bull market ages, the breadth of any further rallies tend to narrow in focus. ... Read more » (by Henry To - March 29, 2006 - Safehaven.com) Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Market: ...a store or shop that sells a particular type of merchandise: ... a vegetable market. » Slideshow: Markets (flickr.com) Take a break... ...Take a Break...Just Relax... Bangkok train drives through a market. It's like a James Bond movie. Mansfield U.K. - Market Place - 360° NASDAQ MarketSite Live Webcam ...just relax... In economics, the concept of a market is any structure that allows buyers and sellers to exchange any goods, services and information. A market consists of all the buyers and sellers of a good who influences its price. An economic system is a particular set of social institutions which deals with the production, distribution and consumption of goods and services in a particular society. The economic system is composed of people and institutions, including their relationships to productive resources, such as through the convention of property. Market Scene ADVERTISEMENT Definitions Types Structures Microstructures History » ...more Links ! ...| Reports | Analysis | Opinions | Comments |... ...Take a Break...Just Relax... ^ top Sources: Wikipedia; Safehaven.com; sfgate.com; BBC.co.uk.; econlib.org; Columbia Encyclopedia .1MTX 2007/2008