What is a market?
Common market definition is as follows: a market is a trading place where people buy and sell goods and services, and where prices are agreed and communicated. Financial markets are where people trade different kinds of financial assets.
Where have you heard about markets?
You may follow the financial market news, or you may have heard people talk about what’s going on in ‘the markets’. It’s a catch-all term used to talk about moving prices. Prices in markets fluctuate according to supply and demand.
What you need to know about markets...
Markets are where prices are set, where you can make transactions, and distribute goods and services.
Markets can have a physical location, such as the London Stock Exchange, but are virtual spaces too where people trade online.
The financial markets include stock markets, bond markets, commodities markets, money markets, and derivatives markets.
Each country, or financial centre, has its own markets. The biggest stock markets are in New York, London and Tokyo.