Subject: business studies
Meaning: market is a place where buyers and sellers meet to exchange goods and services. The place could be in a field, room, roadside but there must be buyers and sellers for a market situation to take place.
Marketing of goods can only take place when buyers and sellers can get in touch with each other conveniently, because of this, special places are built in town and villages as markets. This enables buyers and sellers to come into commercial contact easily. In Nigeria there are many markets, e.g Ogbete Market in Enugu, Eke Oyigbo Market in Rivers State, Ariaria Market in Aba, Onitsha Main Market, e.t.c.
Features Of Market
- There must be buyers and sellers.
- In markets, there must be things to buy- goods and services.
- Marketing of goods can take place face-to-face or through electronic commerce.
- There is always a medium of exchange to facilitate buying and selling. In Nigeria, Naira and kobo are used as means of trade.
- Some dealers in the market form association to form monopoly.
Types Of Market
- Commodity market.: Commodity market is market where raw materials also known as primary products are bought and sold. Manufacturers who need raw materials go through marketing system to obtain them. Raw materials such as groundnut, rubber, cocoa, crude oil are sold in commodity market.
One of the features of commodity market is that brokers are usually used by producers to help them buy certain goods. The oldest commodity market is found in London.
- Capital Market :Capital market is a market where companies go to raise money to finance their activities. This is why it is also called financial market. Unlike commodity market, shares and stocks are sold in capital market instead of goods.
There are rules and laid down procedures for participation in this market, therefore, only those companies that have met these rules are allowed to sell their shares in this market. Investors who are interested in the shares of these companies go to the capital market to invest their money by buying the shares. Once an individual buys shares from a company, he\she becomes a shareholder and is now entitled to receive dividend as profit from the company. Example of Capital market in Nigeria is the Nigerian Stock Exchange Market found in Lagos and Port Harcourt.
Career Opportunities In Capital Market
There are a lot of job opportunities in the Capital market.
- Stock broking: A stock broker links people who wants to buy shares to those who are selling. The broker receives commission for this job. Stock broking is very lucrative.
- Jobber: A jobber buys and sells shares in the Stock Exchange Market. He makes profit by doing this business.
- Registrar: The registrar keeps records of investors of various quoted companies in the capital market.
- One can be employed to work under the Central Security Clearing System of Stock Exchange market. This department keeps records of shares that can be traded on. So many workers are found under this department.
- One can be given the post of Director General, Manager, Clerk, Computer operator, Accountant.
- Money Market: Money Market is a financial market where money is borrowed at short term period. There is restriction in this market. Individuals are not allowed to trade in money market. The trading or transaction is done by banks and the company borrowing or lending.
- What is Market?
- Name six markets in different parts of the country.
- Those who invest their money in Capital Market are called ………………. and what do they receive as profit?
- Read pages 69 to 72 of your Comprehensive Business Studies textbook and list three other types or market.
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