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. Unbundling

    Unbundling is what happens when a parent company with a few lines of business decides to keep its core businesses and sell the rest of its assets, product/service lines, divisions or subsidiaries.
  2. Common Size Balance Sheet

    Investopedia explains: A common size balance sheet is a valuable tool for tracking and analyzing the changes and performance of a business over multiple time periods.
  3. Inventory: FIFO, LIFO

    Whether a company chooses FIFO or LIFO has important implications for the bottom line and for tax liability.
  4. Financialization

    Financialization is an increase in the size and importance of a country's financial sector relative to its overall economy.
  5. ISDA Master Agreement

    The ISDA Master Agreement is a document outlining the terms of an over-the-counter derivatives transaction between two parties. This document serves as a standard agreement in these transactions and is published by the International Swaps and Derivatives Association.
  6. Reconciliation

    Investopedia explains: Reconciliation is an accounting process in which two sets of records are compared to make sure that the figures are in agreement. These sets of records are usually account balances.

comments powered by Disqus
Related Slideshows
  1. The Six Biggest Misconceptions About Bitcoin

    Bitcoin has gone mainstream. Yet it's still massively misunderstood.
  2. Six Ways Your Tax Preparer Knows You're Lying

    An experienced tax preparer can usually sense when a customer is providing fraudulent information to them. Find out what sets off a tax preparer's lie detector.
  3. The Biggest IPO Flops

    IPOs can be a great way to get in early, but these companies remind investors to be cautious when investing in new issues.
  4. Five Women Who Are Leading In Male-Dominated Fields

    In honor of March's Women's History Month, we look at five prominent female leaders who've taken leading roles at tables mostly populated by men.
  5. 5 Celebrities Who Went Bankrupt

    Some of these celebs had hundreds of millions in career earnings, but various mistakes forced each star to bankruptcy filings.
  6. 5 Ways To Make Your Resume Stand Out

    Learn 5 ways to make your resume stand out from the rest.
Trading Center