State and explain any two types of markets on the basis of Nature of Transactions.

On the basis of nature of transactions, markets are classified into two types:

1. Spot Market: This is a market where goods are physically transferred from sellers to buyers. The transaction is settled on the spot — payment is made and goods are delivered immediately.

2. Future Market: This is a market where buyers and sellers enter into future contracts without the intention of actual delivery of goods. Their purpose is to make profit out of fluctuations in prices.