Movie Case Study
The scene that you just saw shows how Harry (played by Daniel Radcliff) is brought by Hagrid to Diagon Alley. Harry is admiring this market and is very amazed. He can see owls, brooms, wands, etc. being sold in the market.
In this episode, Learning Perspectives will explore the meaning of a market and why is it important.
What is a Market?
A market is a place where goods can be exchanged for a price. It helps the buyer and the seller to connect with each other. The need of one person can be satisfied by the other. Markets can be retail outlets or virtual online sellers. Other types of markets include financial markets, auctions, and black markets.
The market also approves the prices of goods and services. These rates are derived from the demand and supply of goods. A buyer creates demand while a seller generates supply. Markets tend to find an equilibrium between this demand and supply. The size of the market is determined by the number of buyers and sellers in that particular market.
The marketplace is generally where transactions take place. These happen at retail shops, small business houses, or wholesale markets. These markets can also be accessed virtually on Amazon, Flipkart, Myntra, etc. In an online world, buyers and suppliers meet virtually not physically.
Types of Markets:
Markets are of varied types. This depends on what kinds of products are sold, customer type, legal or illegal in nature, etc.
This is a market where securities, currencies, and financial instruments are traded. Shares, bonds, and liquid assets are some of the terms that are associated with the financial market. The credit market, money market, Forex market, debt market, and capital markets are the financial markets in India.
An auction market is a place where potential buyers and sellers meet. Buyers who bid for the product, and the highest price wins the product. There is an auction for illiquid securities on the NSE or the National Stock exchange. A periodic call auction was introduced by SEBI or the Securities Exchange Board of India in 2013.
The black market is an illegal market. It includes the trading of illicit drugs, weapons, medicines, currency, etc. It also includes human trafficking. This unrecorded or parallel economy that is created by undertaking such activities leads to a loss of money. During this process, tax gaps are created.
The market size of the market is determined by the number of buyers and sellers. Understanding the market size of the product launch is crucial for any company. Total money in the market is also a factor that determines the market size.