A financial market is defined as a medium through which assets are traded, enabling buyers and sellers to interact and facilitate exchanges. However, the term can be used in a variety of different ways – it can refer physical places, virtual exchanges or groups of people that are interested in making transactions.
More specifically, the term ‘market’ can be used to talk about:
- A broad grouping of assets (like the technology market) or a single asset
- A place – physical or nominal – that facilitates the buying and selling of assets (like the stock market, or shopping centers)
- The trading and movement of financial assets as a whole (‘the markets’, or ‘financial markets’)
- The price at which an asset is being traded (the market price)
- Unauthorized markets (like a grey market)