In Latin, and more exactly in the term mercatus, is where we find the etymological origin of the word market that now occupies us. A term that is used with great frequency in today’s society to refer to all that public place in which, on the established days, you proceed to buy or sell various products.
An example of what we have highlighted would be the following: “Marta today plans to celebrate a dinner at her house with many guests, so she has gone to the market to buy the best fish and the most exquisite meats and thus surprise those”.
When investigating the definition of market and evaluate the function that this word has in everyday language, it is possible to conclude that this concept describes the field, whether physical or virtual, in which the necessary conditions are generated to exchange goods and / or services. It can also be understood as the organization or entity that allows bidders (vendors) and the plaintiffs (buyers) to establish a commercial link in order to carry out operations of various kinds, agreements or exchanges.
It should be noted that the market makes its appearance as a result of the union of groups composed of sellers and buyers, which allows a system based on supply and demand.
The first markets that appeared in the history of mankind had the barter as a base method. With the overcrowding of money, other commercial codes began to be developed. In turn, the increase in production generated the appearance of intermediaries between producers and final consumers.
The economy, as noted when delving into the scope and characteristics of the market, contemplates the existence of various kinds of markets: there are some that are carried out at retail or retailers; others that are wholesale or wholesalers; Some are called raw materials and there are even others known as equity markets (the stock exchanges), for instance.
Markets all of them that would come to be based on another of the most used meanings of the word that we are addressing. Specifically, we are referring to that definition that identifies the market with the group of commercial activities and operations carried out in one or more economic sectors.
In this sense, we could present various examples such as this one that we express below: “The agricultural market is currently experiencing a very complicated situation since its various products have been irreparably affected by the prevailing drought.”
The ideal market of perfect competition is achieved when neither buyers nor sellers have the ability to interfere in the final price of the good or service exchanged. This system is affected at the time of the appearance of monopolies or oligopolies who set prices of their own free will.
Therefore, in order to impose a market with perfect competition Requirements must be met such as the presence of a considerable number of sellers and consumers (where the actions of each of the parties will have little influence on the global market), the homogeneity of the product (all the goods offered are equal), the existence of transparency (those involved are aware of the general conditions that govern the market) and free access to information.
Finally we have to refer to a very common expression that uses the word in question as an integral part. It is a black market, which comes to define the illegal or hidden traffic that occurs in goods that are not allowed or that are not in abundance and that can be purchased at prices totally different from those that exist at that moment in the legal market.