Which of the following best defines a 'regulated market'?

A regulated market is best defined as one that operates under government oversight to ensure compliance with applicable laws and regulations. This oversight is essential for maintaining fair trading practices, protecting investors, and ensuring the stability of the market. Regulatory bodies establish rules governing aspects such as trading procedures, disclosure requirements, and ethical conduct. The presence of this oversight can help prevent fraud, manipulation, and other unethical activities that could undermine market integrity.

In contrast, a market lacking government oversight would not ensure compliance with laws, potentially leading to unfair practices and a lack of protection for participants. A market limited to high-demand commodities does not capture the essence of regulation, as it focuses only on the types of commodities traded rather than the oversight mechanisms in place. Similarly, defining a market as wholly virtual does not address the regulatory framework involved; virtual trading platforms can still be regulated or unregulated. Thus, the focus on government oversight and compliance makes the correct answer an accurate characterization of a regulated market.