market,n. 1. A place of commercial activity in which goods or services are bought and sold <the farmers’ market>. — Also termed mart. 2. A geographic area or demographic segment considered as a place of demand for particular goods or services; esp., prospective purchasers of goods, wherever they are < the foreign market for microchips>.3.Hist. The privilege of having a public market. 4. The opportunity for buying and selling goods or services; the extent of economic demand <a strong job market for accountants>.5. A securities or commodities exchange <the stock market closed early because of the blizzard>. [Cases: Exchanges 1–10.10. C.J.S. Exchanges §§ 2–6, 9–16, 19, 21–43.] 6. The business of such an exchange; the enterprise of buying and selling securities or commodities <the stock market is approaching an all-time high>. [Cases: Exchanges 1–13.10.C.J.S. Exchanges §§ 2–7, 9–43.] 7. The price at which the buyer and seller of a security or commodity agree <the market for oil is $16 per barrel>. [Cases: Exchanges 13. C.J.S.

Exchanges §§ 2, 18.] advancing market.See bull market. aftermarket. See secondary market.

auction market.A market (such as the New York Stock Exchange) in which securities are

bought and sold by competitive bidding through brokers. Cf. negotiated market.

bear market.A securities market characterized by falling prices over a prolonged period. — Also termed down market; receding market.

black market.An illegal market for goods that are controlled or prohibited by the government,

such as the underground market for prescription drugs.

bull market.A securities market characterized by rising prices over a prolonged period. — Also termed advancing market; strong market.

buyer’s market.A market in which supply significantly exceeds demand, resulting in lower


capital market.A securities market in which stocks and bonds with long-term maturities are

traded. See financial market.

common market.An economic association formed by several nations to reduce or eliminate trade barriers among them, and to establish uniform trade barriers against nonmembers; esp. (usu. cap.), EUROPEAN UNION.

currency market.See foreign-exchange market.

derivative market.A market for the exchange of derivative instruments. — Also termed paper

market. See DERIVATIVE.

discount market.The portion of the money market in which banks and other financial

institutions trade commercial paper.

down market.See bear market.

financial market.A market for the exchange of capital and debt instruments. See capital

market; money market.

foreign-exchange market.A market where various currencies are traded internationally. • Foreign-exchange markets take the form of spot, futures, and options markets. — Also termed currency market. See futures market; spot market.

forward market.See futures market. free market.See open market.

Friday market.The normal tendency for stock prices to decline on Fridays. • The tendency occurs because many investors balance their accounts before the weekend to avoid any adverse changes in market prices over the weekend.

futures market.A commodity exchange in which futures contracts are traded; a market for a trade (e.g., commodities futures contracts and stock options) that is negotiated at the current price but calls for delivery at a future time. — Also termed forward market. See FUTURES CONTRACT. [Cases: Commodity Futures Trading Regulation 6. C.J.S. Securities Regulation §


geographic market.Antitrust. The part of a relevant market that identifies the regions in which a firm might compete. • If a firm can raise prices or cut production without causing a quick influx of supply to the area from outside sources, that firm is operating in a distinct geographic market.

[Cases: Monopolies 20(7). C.J.S. Monopolies § 120.]

“For purposes of [the Sherman Act], the relevant geographic market comprises the area in which the defendant effectively competes with other individuals or businesses for distribution of the relevant product. Stated differently, the relevant geographic market consists of the area from which the sellers of a particular product derive their customers, and the area within which the

purchasers of the product can practically seek the product.” 54 Am. Jur. 2d Monopolies, Restraints of Trade, and Unfair Trade Practices § 57, at 119–20 (1996).

gray market.A market in which the seller uses legal but sometimes unethical methods to avoid a manufacturer’s distribution chain and thereby sell goods (esp. imported goods) at prices lower than those envisioned by the manufacturer. See PARALLEL IMPORTS.

“One of the most controversial areas of customs law concerns ‘gray market goods,’ goods produced abroad with authorization and payment but which are imported into unauthorized markets. Trade in gray market goods has increased dramatically in recent years, in part because fluctuating currency exchange rates create opportunities to import and sell such goods at a discount rate from local price levels.” Ralph H. Folsom & Michael W. Gordon, International Business Transactions § 20.8 (1995).

institutional market.The demand among large investors and corporations for short-term funds

and commercial paper.

market overt.An open, legally regulated public market where buyers, with some exceptions,

acquire good title to products regardless of any defects in the seller’s title. Cf. FAIR. [Cases: Sales


money market.The financial market for dealing in short-term negotiable instruments such as commercial paper, certificates of deposit, banker’s acceptances, and U.S. Treasury securities. See financial market.

negotiated market.A market (such as an over-the-counter securities market) in which buyers

and sellers seek each other out and negotiate prices. Cf. auction market.

open market.A market in which any buyer or seller may trade and in which prices and

product availability are determined by free competition. — Also termed free market.

original market.See primary market. over-the-counter market.See OVER-THE-COUNTER MARKET.

paper market.See derivative market.

primary market.The market for goods or services that are newly available for buying and selling; esp. the securities market in which new securities are issued by corporations to raise capital. — Also termed original market.

product market.Antitrust. The part of a relevant market that applies to a firm’s particular product by identifying all reasonable substitutes for the product and by determining whether these substitutes limit the firm’s ability to affect prices. [Cases: Monopolies 20(8). C.J.S. Monopolies § 119.]

“For purposes of an antitrust claim under … the Sherman Act, the relevant product market includes those services or commodities which are reasonably interchangeable by consumers for the same purposes. In order to establish the relevant product market, therefore, a plaintiff must sufficiently identify what types of products are reasonably interchangeable substitutes for the defendant’s product within the appropriate area of competition.” 54 Am. Jur. 2d Monopolies, Restraints of Trade, and Unfair Trade Practices § 58, at 121 (1996).

public market.A market open to both buyers and sellers. receding market.See bear market.

recognized market.A market where the items bought and sold are numerous and similar, where competitive bidding and bartering are not prevalent, and where prices paid in sales of comparable items are publicly quoted. • Examples of recognized markets include stock and commodities exchanges. Under the UCC, a secured creditor may, upon the debtor’s default, sell the collateral in a recognized market without notifying the debtor. Such a sale is presumed to be commercially reasonable.

relevant market.Antitrust. A market that is capable of being monopolized — that is, a market in which a firm can raise prices above the competitive level without losing so many sales that the price increase would be unprofitable. • The relevant market includes both the product market and the geographic market. [Cases: Monopolies 12(1.3). C.J.S. Monopolies §§ 28–37, 52, 64–66.]

secondary market.The market for goods or services that have previously been available for buying and selling; esp. the securities market in which previously issued securities are traded among investors. — Also termed aftermarket.

seller’s market.A market in which demand exceeds (or approaches) supply, resulting in raised

prices. soft market.A market (esp. a stock market) characterized by falling or drifting prices and low


spot market.A market (esp. in commodities) in which payment or delivery is immediate <the

spot market in oil>.

strong market.See bull market.

thin market.A market in which the number of bids or offerings is relatively low.

[Blacks Law 8th]