TOZZIBLINKZ
VIP Contributor
By description and definition a market is considered to be a physical or nonphysical place in which buyers and sellers of both products and services to meet in order to accomplish their interest and desire. If we notice in the above definition put and get to see that the market may not necessarily be a physical environment filled with people, which are buyers and sellers of products and services. A market can strictly exist online, and that is why we have what is known as online marketing, which involves the buying and selling of goods and services via online platforms and even social media platforms. To some extent majority of people believe that online market is considered to be very much efficient than local or land-based market. Customer services is more reputated and efficiently practiced on online markets than offline markets. Furthermore, it is important that we all understand that there are some features that makes up an efficient market, be it an online market or offline market. Below are some features of a good an efficient market:
INFORMATION TRANSPARENCY: All relevant information is widely and quickly available to all market participants.
FAIR PRICES: Prices accurately reflect all available information and quickly adjust to new information.
COMPETITION: Many buyers and sellers participate in the market, preventing any single participant from controlling prices.
LOW TRANSACTION COSTS: The costs associated with buying and selling assets, such as commissions and bid-ask spreads, are low.
NO BARRIERS TO ENTRY: New participants can enter the market easily and compete with existing ones.
INFORMATION TRANSPARENCY: All relevant information is widely and quickly available to all market participants.
FAIR PRICES: Prices accurately reflect all available information and quickly adjust to new information.
COMPETITION: Many buyers and sellers participate in the market, preventing any single participant from controlling prices.
LOW TRANSACTION COSTS: The costs associated with buying and selling assets, such as commissions and bid-ask spreads, are low.
NO BARRIERS TO ENTRY: New participants can enter the market easily and compete with existing ones.