Understanding the Markets

Chapter 1

Introduction

W

e refer to the ‘markets’ or ‘the capital markets’ or the ‘City’ or

indeed many other such generic expressions in business, in the

media or in general conversation, but what exactly do we mean?

‘The markets’ can mean stocks or shares, or money or commodities

or, for that matter, commerce. A livestock farmer probably relates the

term ‘market’ to something quite different from a banker, likewise

estate agents and fund managers, yet the ‘financial’ markets affect

them all in some way or other. On that basis markets are perhaps best

described as component parts of the business and commerce

functions that exist within the economic en ...