Markets in India
Farmer market
India essentially being an agricultural based economy has a huge farmer market spread across the length and breadth of the nation. This market operates at various levels and has products to take care of every farmer's needs. The farmer market not only trades the seeds and harvests, but also all tools and equipment required by farmers.
Some of the farmer markets are run by the local Government. This is of immense value as then products required for farming are usually available at a subsidized rate for the member farmers. In fact, the Government-run farmer market is a great boon for those in the agricultural sector, as the Government subsidizes all products required for farming, and assures returns for the harvest. They also provide various other benefits for the farmers.
The farmer market is also a meeting place for farmers from various areas. Here, the farmers gather to sell their harvest. They usually first barter with each other to take care of their domestic needs and then sell the rest in the open market.
Foods market
The foods market operate largely at three levels being:
The retail foods market combines of those areas earmarked in the city as market places for the local market. Some of these markets are large enough to cater to all consumer needs. The unorganized retail food markets consists of the open air ones where vendors sell their food stuff stock in baskets or on moveable carts. Another form of the retail foods market is the departmental stores or what are known as 'food bazaars'.
The wholesale foods market comprises of those zones where manufacturers and bulk distributors sell their food stuff to the retails and others. Consumers can also make bulk purchases from such markets and avail of the wholesale prices. They just need to make the effort to travel the distance to these markets.
The export-import foods markets are the most organized of all the markets. Here the orders are also large, definitely not catering to the local needs. This market is meant for the international trade of food products.
Forex market
If you are traveling abroad then you need to purchase the foreign currency. There are a number of touts that are available all over the place, carrying stacks of foreign currency. However, preferably one should avoid dealing with touts when it comes to foreign exchange. This is because you may, without realizing, come across a crook who gives you counterfeit currency notes in exchange for all that you have paid. Another factor is that if the currency is genuine the touts charge you a marked up exchange rate. This is known as black-marketing in the forex market.
The forex market is actually an organized sector of foreign currency exchange, or foreign currency buying. There are authorized forex dealers, who set up shop for those seeking foreign currency. They are registered with the Reserve Bank of India and sell foreign currencies at the actual rate announced officially.
Some dealers in the forex market may also charge an additional fee for their services. They also charge extra for the tax imposed on foreign exchange trades. The advantage of dealing with official forex dealers is that one is assured genuine currency at actual exchange rate. This is better than taking a risk with a forex tout.
Money market
The money market largely functions on the basis of what is known as the debt instrument, which is of varying types. In the ancient days whenever someone would borrow money from a moneylender there would be an agreement between the borrower and the lender. This agreement is known as the debt instrument.
As per the technical definition of money market: It is the market where short-term money requirements are met. And the instruments of the money market are classified as those with a maturity period ranging to any time span that is less than or equal to a year.
The largely traded instruments in the money market are:
Stock market
The stock market is one place where one can buy and sell companies in a single day. No, not literally as owner; but in the form of the stocks and shares. Each share that one buys on the stock exchange makes them a part owner of that particular company. For instance a person buys 500 shares of xyz company, becomes a part owner of that company as long as he/she owns the shares. The purchase is validated by the issuing of what is known as share certificates.
As owner of the shares the person will earn profits on his investments, which is given in the form of dividends if the company has earned profits in that financial years. And as long as the individual owns the shares of the company he/she is entitled to the dividends.
Trading on the stock market is a matter of risk-taking. This is because when the going is good the company's share value keeps increasing. On the other hand if things swing the other way and the rate falls below that at which the purchase was made then losses are incurred.
When the stock market in general faces an upward swing then it is known as a bullish market or market for the bulls, which implies the best time to buy in anticipation that the market will further rise to increase profits. On the other hand when the market is swinging downwards then it is known as a bearish market or market for the bears, which means it is the best time to sell in anticipation that market will further fall to curtail losses.
Farmer market
India essentially being an agricultural based economy has a huge farmer market spread across the length and breadth of the nation. This market operates at various levels and has products to take care of every farmer's needs. The farmer market not only trades the seeds and harvests, but also all tools and equipment required by farmers.
Some of the farmer markets are run by the local Government. This is of immense value as then products required for farming are usually available at a subsidized rate for the member farmers. In fact, the Government-run farmer market is a great boon for those in the agricultural sector, as the Government subsidizes all products required for farming, and assures returns for the harvest. They also provide various other benefits for the farmers.
The farmer market is also a meeting place for farmers from various areas. Here, the farmers gather to sell their harvest. They usually first barter with each other to take care of their domestic needs and then sell the rest in the open market.
Foods market
The foods market operate largely at three levels being:
- The retail foods market
- The wholesale foods market
- The export-import foods market
The retail foods market combines of those areas earmarked in the city as market places for the local market. Some of these markets are large enough to cater to all consumer needs. The unorganized retail food markets consists of the open air ones where vendors sell their food stuff stock in baskets or on moveable carts. Another form of the retail foods market is the departmental stores or what are known as 'food bazaars'.
The wholesale foods market comprises of those zones where manufacturers and bulk distributors sell their food stuff to the retails and others. Consumers can also make bulk purchases from such markets and avail of the wholesale prices. They just need to make the effort to travel the distance to these markets.
The export-import foods markets are the most organized of all the markets. Here the orders are also large, definitely not catering to the local needs. This market is meant for the international trade of food products.
Forex market
If you are traveling abroad then you need to purchase the foreign currency. There are a number of touts that are available all over the place, carrying stacks of foreign currency. However, preferably one should avoid dealing with touts when it comes to foreign exchange. This is because you may, without realizing, come across a crook who gives you counterfeit currency notes in exchange for all that you have paid. Another factor is that if the currency is genuine the touts charge you a marked up exchange rate. This is known as black-marketing in the forex market.
The forex market is actually an organized sector of foreign currency exchange, or foreign currency buying. There are authorized forex dealers, who set up shop for those seeking foreign currency. They are registered with the Reserve Bank of India and sell foreign currencies at the actual rate announced officially.
Some dealers in the forex market may also charge an additional fee for their services. They also charge extra for the tax imposed on foreign exchange trades. The advantage of dealing with official forex dealers is that one is assured genuine currency at actual exchange rate. This is better than taking a risk with a forex tout.
Money market
The money market largely functions on the basis of what is known as the debt instrument, which is of varying types. In the ancient days whenever someone would borrow money from a moneylender there would be an agreement between the borrower and the lender. This agreement is known as the debt instrument.
As per the technical definition of money market: It is the market where short-term money requirements are met. And the instruments of the money market are classified as those with a maturity period ranging to any time span that is less than or equal to a year.
The largely traded instruments in the money market are:
- Commercial Papers - CP
- Certificates of Deposit - CD
- Treasury Bills - T-Bills
- Can be easily liquidated
- Are easy to trade
- There is no tax deducted at source, as far as the interest is concerned
Stock market
The stock market is one place where one can buy and sell companies in a single day. No, not literally as owner; but in the form of the stocks and shares. Each share that one buys on the stock exchange makes them a part owner of that particular company. For instance a person buys 500 shares of xyz company, becomes a part owner of that company as long as he/she owns the shares. The purchase is validated by the issuing of what is known as share certificates.
As owner of the shares the person will earn profits on his investments, which is given in the form of dividends if the company has earned profits in that financial years. And as long as the individual owns the shares of the company he/she is entitled to the dividends.
Trading on the stock market is a matter of risk-taking. This is because when the going is good the company's share value keeps increasing. On the other hand if things swing the other way and the rate falls below that at which the purchase was made then losses are incurred.
When the stock market in general faces an upward swing then it is known as a bullish market or market for the bulls, which implies the best time to buy in anticipation that the market will further rise to increase profits. On the other hand when the market is swinging downwards then it is known as a bearish market or market for the bears, which means it is the best time to sell in anticipation that market will further fall to curtail losses.
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