Market and Aid to Trade – JSS2 Business Studies Lesson Note (First Term)

 MARKET

MARKET:- is a place where buyer and seller meet together to transact business. Has a place where there is transfer of ownership of goods and services.

Examples :   Idumota market, Katangowa market etc Market can also take place through communication between the seller and buyer without physical contact e.g. GSM, Internet, Jumia, OLX etc

 Types of Market

1. Commodity market
2. Capital market
3.  Money market

 1.   Commodity Market – open market, market stall, mobile shop etc

  2.  Capital Market – institutes that trade in capital market are :

– Stock Exchange market

– Merchant banks

– Insurance companies

 3. Money Markets 

1. Pension funds manager
2. Commercial banks
3.  Brokerage firms
4. Cooperative societies

 EXERCISE

Give ten examples of commodity market.

AIDS to trade

These are services that make trade easy or facilitate trade. They are:

1.    Advertising
2.   Banking
3.  Communication
4.  Insurance
5.  Tourism
6. Transportation
7.  Warehousing

Advertising – is creating awareness in the mind of the public about the existence of old and new in the market. There are several media of advertising such as radio, magazine, television, newspaper, cinema, billboard, internet, journal etc.

Banking – is making fund available for business and individual. It makes trade easy. Banks make money available inform of loan and overdraft. Banks helps to keep money, valuables and give financial advise.

Communication – is a means of sending and receiving information from pre place to another. It makes trade easy because it links suppliers with the customers through telephone, telex, internet, E-mail etc.

Insurance – make a security/protection against the risk/loss in business because business is full of risk.

There are different types of insurance – marine, motor vehicle, fire, life assurance etc.

Tourism – is a a place for recreation holidays. Tourist centres increase trade activities e.g. Olumo Rock, Zakari game reserve, Obudo cattle ranch etc

Transportation – provides the means of carrying people and goods from one place to another. Transportation could be by land, water, air and pipeline

Warehousing – the provision of facility to store goods and materials until they are needed. It ensures steady supply of goods.it could be ordinary warehousing bonded and public warehouse. Warehouse is a place where finished goods and kept until they are needed.

  Exercise List and explain five services that make trade easy.