Definition of Cash market:
A cash market is a marketplace in which the commodities or securities purchased are paid for and received at the point of sale. For example, a stock exchange is a cash market because investors receive shares immediately in exchange for cash.
Cash markets are also known as spot markets, because their transactions are settled "on the spot." The opposite of a cash market is a futures market, where buyers pay for the right to receive a good, such as a barrel of oil, at a specified date in the future.
Securities: Market in which delivery occurs almost immediately after a sale. Also called spot market. See also futures market.
Commodities: Market in which actual products, instead of futures contracts or options, are sold and delivered.
How to use Cash market in a sentence?
- In a cash market, investors take possession of goods at the point of sale.
- They are the opposite of a futures market, in which investors purchase the right to take possession at some future date.
- Stock exchanges are primarily cash markets, because shares are exchanged for cash at the point of sale.
Meaning of Cash market & Cash market Definition