On the basis of definitions of market we can mention following main features of market:
- Buyers and Seller: Buyers and sellers are also essential for market. Without buyers and sellers the sale-purchase activity cannot be conducted which is essential part of a market.
- Commodity: For the existence of market, a commodity is essential which is to be bought and sold. There cannot be a market without commodity.
- Area: There should be an area in which buyers and sellers of the commodity live in. It is not essential that the buyers and sellers should come to a particular place to transact the business.
- Close Contact: There should be close contact and communication between buyers and sellers. This communication may be established by any method. For example, in olden days this contact and communication was possible only when the buyers and sellers of a particular commodity could come at a particular place. But now with the developed means of communication physical presence of buyers and sellers at one particular place is not essential. They can contact with each other through letters, telegrams, telephones, etc. In the boundary of a market we include only those buyers and sellers who can maintain regular close contacts. For instance, India’s farmers have no close contacts with the consumers of England; hence though they are the buyers and sellers of grains yet do not come under the purview of a market.
There should be some competition among buyers and sellers of the commodity in a market.