Market

Introduction to Market :
Market is generally understood as a particular place or locality where goods are sold and purchased. But, in economics, market refers to an arrangement through which buyers and sellers come in contact with each other directly or indirectly and exchange of goods and services takes place among them.

Definition of Market :
According to Augustin Cournot, “Economists understand the term market, not any particular market place in which things are bought and sold, but the whole of any region in which buyers and sellers are in such a close contact with one another that the prices of the same goods tend to equality easily and quickly.”
Thus, market is a network of dealings between potential buyers and potential sellers. At any point of time, a market will exist if there are :
1) Buyers and sellers
2) A product or service to be bought and sold
3) Price of the product
4) Close contact between buyers and sellers
5) Knowledge about market

Beyond that broad definition, the term "market" encompasses a variety of things, depending on the context. For instance, it may refer to the place where securities are traded—the stock market. Alternatively, the term may also be used to describe a collection of people who wish to buy a specific product or service in a specific place, such as the Brooklyn housing market. Or it could refer to an industry or business sector, such as the global diamond market.

Markets may be represented by physical locations where transactions are made. These include retail stores and other similar businesses that sell individual items to wholesale markets selling goods to distributors. Or they may be virtual. Internet-based stores and auction sites such as Amazon and eBay are examples of markets where transactions can take place entirely online and the parties involved never connect physically.