The consumer market today is becoming an integral part of our life, because in order to live and prosper, a person today needs not only a number of vital goods and products, but also their choice. The functions of the labor market are aimed at improving the quality of service and raising the living standards of the consumer. For the market to function normally, three conditions must be met: the presence of private property, competition and free prices.
The main functions of the market:
1. Regulatory. The regulator of production here is the market through supply and demand. Thus, he establishes the necessary proportions in the economy.
2. Stimulating. Here, the market stimulates the introduction of scientific and technological progress at the enterprise, expanding the product range and reducing production costs.
- Informational. It provides objective information about the quality, quantity and assortment of goods and services that the market has.
- Intermediary. The consumer is given the right to choose the optimal supplier of products.
- Sanitizing. Under market conditions, only strong, viable business units survive.
- Social. Market participants differentiate according to income.
The structure, types and functions of the market:
1. Market types:
- goods and services market
- labor market
- capital market
- information market
- financial market
2. Market mechanisms:
- free competition market
- regulated market
- monopolized market
3. The degree of market saturation:
- in short supply
- equilibrium
- excess
5. The legal framework:
- legal market
- "black market
The securities market can be regarded as an independent sector of the financial market, it is he who is the source of attracting capital to the market economy. The functions of the securities market are conditionally divided into two groups: general market functions and specific, which significantly distinguish it from other markets.
General market functions:
- Commercial. Responsible for profit from operations in this market.
- Price. Responsible for the constant movement of prices that the market provides.
- Informational. Communicates information about the objects of trade to all participants.
- Regulatory. Creates trade rules, dispute resolution, sets priorities.
Market specific features:
1. Redistribution.
Responsible for:
- redistribution of funds between areas and industries.
- conversion of consumer savings into a productive form.
- financing of the state budget without issuing new funds.
2. The function of insurance of financial and price risks.
A market economy is a system based on freedom of choice, private property and competition. First of all, it guarantees freedom to the consumer, as it gives him freedom of choice in the market of food and other goods and services. The main driving force of a market economy and the main motive is personal interest, only for buyers it represents the maximum benefit, and for manufacturers - the maximum profit. The basis of healthy competition is complete freedom of choice.
Healthy competition involves:
- Uniformity of services and goods;
- A large number of buyers and sellers;
- No price discrimination;
- Full pricing information;
- Absolute mobility of all resources.
Private property is a guarantee of non-interference of third parties in voluntarily concluded contracts, and it also constitutes the basic basis of a market economy. Meanwhile, the classical market economy is a method due to government intervention in the economy. The government here acts as an organizer that determines the rules of the game in the market and carefully monitors the implementation of these rules.