Market- This is the place where two parties exchange their goods and services. The parties are called as buyer and seller or the place where securities are traded.
Types of market:- Markets vary for a number of reasons, including the kinds of products sold, location, duration, size, and constituency of the customer base, size, legality, and many other factors.
1) Black market - this is an illegal market where transactions occur without the knowledge of the government or other regulatory agencies. This market is in existence to avoid tax. This market’s transaction is based on cash.
2) Auction market- An auction market brings many people together for the sale and purchase of specific lots of goods. The buyers or bidders try to top each other for the purchase price. The items up for sale end up going to the highest bidder. This involve livestock and homes
3) Financial market- any place where securities, currencies, bonds, and other securities are traded between two parties. These provide capital formation and liquidity for businesses. They are physical or virtual.
Other than black market all other markets are subjected to rules and regulations set up by the government.
Investment- it is an action to invest money for the return of profit.
Types of investments: - there are many types of investment. Some of them are-
1) Stocks- when you buy shares of a company’s stock, you own Piece of that company.
2) Bonds- it is loan an investor makes to an organisation and on the date of bond’s maturity repayment will be done.
3) Investment funds- funds are mutual funds, closed- end funds and exchange trade funds.
4) Bank products- Banks and credit unions can provide a safe and convenient way to accumulate savings—and some banks offer services that can help you manage your money.
5) Options- Options are contracts that give the purchaser the right, but there is no obligation, to buy or sell a security.
6) Annuities- An annuity is a contract between you and an insurance company, in which the company promises to make periodic payments, either starting immediately called an immediate annuity or at some future time it is called as deferred annuity.