How the Market is Classified / what is its classification

Market has been classified into various parts, the parts of classification has been than subdivided into various categories which are described here:

Market Classification on the basis of area: a boundary with certain limits in which business is proceed or the limits in which business is carried out is called area based market such as family, local, national and then international.

Family business includes the buying and selling of goods and services from each other’s only, siblings do trade to each other they do buy products of each other for the satisfaction of their wants.

A local market which is placed nearby to the center of the village can be also called as area basis market, National and International trade is also knows are the area wise market.

On the Basis of Goods: Goods like capital goods and producer goods capital goods includes money, foreign exchange and stock exchange where the currency of different countries are exchanged and where the share of the companies are bought and sold is called stock exchange market.

Producer goods are those goods which are manufactured and converted the semi-finished goods or raw materials into final goods bullion market can be the very good example for this market where gold which is extracted from different places is manufactured at particular company and then given the final shape such as bracelet, nickels and so on.

On the Basis of Economics: Perfect and Imperfect as the example of economic basis market in which in perfect economics a huge number of buyer and sellers offer their values with a uniform price of products which includes complete knowledge of products and which also do not have any restrictions on the movement of the products.

Imperfect market also includes large no: of buyers and sellers but goods are not identical there is no uniformity for pricing at all and also imperfect market lacks in the communication as well, there is also restriction of the movement of goods as well.

On the Basis of transaction: On the spot transaction or future transaction, on the spot meaning where you have paid the price for a product and you received or takes the goods with yourself whereas in future transactions it includes mostly the consignment transactions in which sometimes money is paid either partially or wholly but the delivery of commodities is done after some time, say for after 3 days the delivery of their products is delivered to their locations.

2 Replies to “How the Market is Classified / what is its classification”

Leave a Reply

Your email address will not be published. Required fields are marked *