II. On the Basis of Commodities/Goods a. Commodity Market: A commodity market is a place where produced goods or consumption goods are bought and sold. Commodity markets are sub- divided into: i.
Produce Exchange Market: It is an organised market where commodities or agricultural produce are bought and sold on wholesale basis. Generally it deals with a single commodity. It is regulated and controlled by certain rules. e.g.
Wheat Exchange Market of Hapur, the Cotton Exchange Market of Bombay etc. ii. Manufactured Goods Market: This market deals with manufactured goods. e.g., Leather goods, Manufactured machinery etc.
The Leather Exchange Market at Kanpur is an example of the same. iii. Bullion Market: This type of market deals with the purchase or sale of gold and silver. Bullion markets of Mumbai, Kolkata, Kanpur etc., are examples of such markets.
b. Capital Markets: New or going concerns need finance at every stage. Their financial needs are met by capital markets. They are of three types: i.
Money Market: It is a type of market where short term seurities are exchanged. It provides short term and very short term finance to industries, banks, governments agencies and financial intermediates. 12th Commerce Unit - - . .
AM ii. Foreign Exchange Market: It is an international market. This type of markets helps exporters and importers, in converting their currencies into foreign currencies and vice versa. iii.
The Stock Market: This is a market where sales and purchases of shares, debentures, bonds etc., of companies are dealt with. It is also known as Securities market. Stock Exchanges of Mumbai, Kolkata, Chennai etc., are examples for this type of market.