The market and its types

Any contact in which sellers and buyers agree to swap goods or services for money is called a market. A market does not always need a special place: trade can also take place by phone and over the internet. A market has four functions: it brings producers and consumers together, forms prices, regulates the economy by “signalling” through prices what and how much to produce, and links countries through trade. By what is sold, markets divide into several types: the consumer-goods market (food, clothing, services), the market for means of production (machine tools, raw materials; wholesale trade is organised by commodity exchanges), the labour market (labour power; job seekers and employers are linked by state employment-service centres and other intermediaries), the financial market (money is lent, and securities such as shares and bonds and foreign currency are sold; trade in securities is organised by stock exchanges) and the market for intellectual goods (inventions, programs, films, scientific ideas). By territorial scope markets are local, regional, national and international. When buying online, use only reliable and familiar shops or apps and consult an adult.