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. Interest Rates: Nominal and Real

    An interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates are the primary yardstick for measuring how much return lenders will get. However, the stated interest rate on a loan, sometimes called the nominal rate, doesn't tell the whole story.

  2. Cost Basis Basics

    The term "cost basis" refers to the original value of a security you own. When you sell a stock, bond or mutual fund, you use the cost basis to determine your profit or loss, which in turn affects the amount of tax you owe. There are multiple methods for determining one's cost basis, one of which is the "first in, first out" method or FIFO.

  3. The Nash Equilibrium

    Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium has been used in such diverse fields as international relations, psychology and economics. Game theory in general looks at how individuals or groups make choices that will in turn affect the choices of other parties.

  4. The Options Premium

    An options premium is the amount of money that investors pay for a call or put option. The two components that affect options pricing are the intrinsic value and time value. Matthew is interested in Roadking Auto, a luxury car maker, and finds that he can buy a call option with a strike price of $40 a share.

  5. Open Market Operations Explained

    The term “open market operations” refers to a monetary policy tool in which central banks buy and sell bonds to regulate the money supply in the economy. The United States employs open market operations through the Federal Reserve Bank.

  6. What Is A Mortgage?

    A mortgage is a loan used to purchase a home, where the property serves as the borrower's collateral.

comments powered by Disqus
Marketplace
Related Slideshows

  1. 5 Worst-Selling Cars Of All Time

    If AMC's popular series "Breaking Bad" had come along a few years earlier, maybe Pontiac's Aztek wouldn't have gone down as one of the worst-selling vehicles of all time.

  2. 5 Businesses That Started During A Recession

    These companies found success despite being started during economic downturns.

  3. Break Into Forex In 12 Steps

    Learn how to get started in forex trading.

  4. 5 Best-Selling Cars Ever

    Here's a list of the best-selling cars of all time.

  5. 5 Top-Grossing Video Game Characters

    These top-grossing video game characters have brand power to rival pro athletes and movie stars. Find out which colorful character is leading the pack.

  6. 5 Famous Discontinued And Uncommon U.S. Currency Denominations

    While we can choose from a rich array of singles, fins, sawbucks, Jacksons, $50s and Benjamins, there are several other denominations that the U.S. Treasury has discontinued. Here are the most notable ones.
Trading Center