What does market trading encompass?

Market trading primarily refers to the buying and selling of securities in financial markets. This activity encompasses the exchange of stocks, bonds, options, and other financial instruments between buyers and sellers. The essence of market trading lies in the mechanisms that allow market participants to transact and determine the prices of these securities based on supply and demand.

It is critical to understand that issuing new stocks is part of the primary market, where companies raise capital by selling new shares to investors. Regulating commodity prices falls under the purview of regulatory bodies and is not directly related to the trading activities themselves. Providing investment advice is an essential component of financial services but does not constitute trading; instead, it aids investors in making informed trading decisions. Thus, the correct answer highlights the fundamental activity that defines market trading, emphasizing the direct interaction between buyers and sellers within financial markets.