Markets

In the Middle Ages the right or concession to carry on trade at a particular time and place was called a market,1 as well as the locality itself where the trade was conducted. The term was also applied to the stock exposed for sale, and to the congregation of buyers and sellers. It is a striking example of the doctrine of evolution in its aspect of the dissipation of motion and integration of matter (that is to say, the gradual massing together of bodies by diminution of the intensity of forces producing separating movements), that markets tend to concentrate in particular spots. Thus we have the wool market, where sales of wool are arranged; the coal market for dealing in coal, and others analogous to this distinction, as the Consol market in the Stock Exchange, where the dealers congregate in a separate group for the purpose of buying and selling Consols alone, while other dealers in the same Exchange, for example the railway market, carry on transactions in the particular stocks and shares indicated by the titles of their respective markets.

1Market, derived from the Latin, mercari, to trade, and closely connected with the Latin, merx, merchandise or goods.

Markets Need Not Be Centralised

It is not necessary, however, that markets of any kind should be centralised; the traders may extend over an entire town, or region of country, in separated localities, and yet constitute a common market, provided that by means of fairs, meetings, published price lists, the telegraph, telephone, and post office, they are brought into close business communication with each other, so that, although the localities are distinct, the knowledge that composes a free, open market is intimate and common.

Definition Of Word Market

A market, then, may be defined as any body of persons who are in close and constant business relations with one another, and who carry on extensive transactions in any commodity. A great city may accordingly contain as many different markets as there exist important branches of trade. In country towns we find markets composed of congregations of people for the exchange of provisions and live stock, and this formed the original implication of the word. The term has thus become extended in its range to any periodical or constant assemblies of both buyers and sellers, transferring commodities through the accepted medium of exchange between each other.

"No Market."

The term Market, too, is metaphorically applied: as when it is said there is "No market" at some given time for a particular commodity, or for particular stocks and shares - the meaning being that, owing to various causes, no transactions are practicable, or can be effected for the time being, in those commodities or securities, in consequence of the dearth of buyers, however desirous other persons may be to sell, or no sellers, however eager other persons may be to buy. In the former case a security may be deemed unsound or unprofitable, and the holder consequently is anxious to sell, but the same condition prevents a purchase; in the latter case a security may have greatly improved so that people wish to obtain it, but for the same reason the owner is unwilling to part with its possession.

"Making A Market."

The phrase occurs of "Making a market" and possesses an evil connotation. A new company - feeble of construction and forlorn of promise - is about to be launched; its intrinsic value and prospects of prosperity would not in themselves induce the public to subscribe for its shares; hence the manoeuvre (termed " Making a market ") is adopted of giving an appearance of demand and appreciation by purchases of shares organised by the promoters and their agents, which do not in any way represent genuine dealings or testify in any degree to the solidity and real attractiveness of the concern. Flattering reports are skilfully fabricated and circulated, and mysterious hints are plentifully scattered of an unrivalled success; for no one knows better than the professional promoter the seductive efficiency of what are called "friendly tips" upon the credulous mind. Favoured admission, to the exclusion of others, forms a potent appeal. This forced show of demand (exhibited in the manufactured rise of price as an apparent sign of estimation) often imposes upon the public, and deludes them into the promoter's device of exchanging good money for worthless securities, whose only reality, indeed, is the certainty of subsequent lamentation. It need scarcely be added that brokers of character and reputation hold themselves aloof from these nefarious projects.

Disturbed Markets

A market in any ware or stocks becomes "disturbed" when unusual circumstances have arisen (a threat of war, the failure of an important firm, a critical speech by a prominent statesman, here or abroad, and similar events) which especially affect the exchangeability or readiness of transfer of those wares or stocks: investors and speculators become alarmed by such occurrences and their possible consequences upon the values of securities, and hence refrain from buying, or endeavour to sell. A market (that is, the body of dealers in stocks, and the public with whom they deal) grows "sanguine" or "buoyant" when the particular articles dealt in are in large demand, and their prices thus advance under the stimulus of hopeful feelings, and confidence in future success; or a market is "depressed," "heavy," or "stagnant," when, from weakening or loss of confidence in the stability or prosperity of the companies or institutions whose securities are concerned, the buyers become scanty, and prices consequently fall.