Capitalism

Loading the player...

Capitalism is an economic system in which the free market alone controls the production of goods and services. It stands in direct contrast to government-controlled economies, where production and prices are set by a central decision-making body.
 
Economist Adam Smith famously compared free markets to an “invisible hand” pushing producers toward goods and services for which there is greatest need.
 
Filed Under:

Related Videos

  1. Perfect Competition

    Perfect competition is an economic idea that does not exist in the real world but can be used as a standard to measure the efficiency and effectiveness of real world markets.
  2. Mixed Economic System

    Many of today's democracies operate under what is known as a mixed economic system, which combines aspects of capitalism and socialism.
  3. Free On Board

    Free On Board is a legal term referencing the passing of title and liability between buyers and sellers of goods.
  4. How to Trade Futures Contracts

    Futures is short for Futures Contracts, which are contracts between a buyer and seller of an asset who agree to exchange goods and money at a future date, but at a price and quantity determined today.
  5. What is Net Worth?

    Net worth is the amount by which assets exceed liabilities. Another way to say this is, it's the value of everything you own, minus all your debts.
  6. Stop Loss Order Strategy

    A stop loss order is an order placed with a broker to sell a stock immediately if it drops to a certain price. It's a common way for investors to protect themselves from the possibility of a large loss. It is simple and costs nothing. You simply tell your broker you want it.

comments powered by Disqus
Trading Center