Markets exist for the purpose of facilitating exchanges of products, services and resources. Buyers and sellers are brought together and convey their desire to buy or sell by stating their offered and asked prices for different quantities. Even if a transaction does not take place, information if translated in the pricing of the product.
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An example of a market is that of the New York Stock Exchange. Its purpose is to facilitate the purchase and sale of securities. The transactions are not performed by the buyers and sellers themselves, but by brokers and dealers on their behalf. Daily transaction prices are reported in many newspapers nationwide because markets also perform the important function of pricing of goods, or in this case securities. |
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