Capitalism
📈 Investing
Quick Definition
Capitalism is an economic system where private individuals rather than the state own and control property and businesses, operating them for profit.
Examples
- 1In the United States, most businesses are privately owned and operated for profit, exemplifying a capitalist economy.
- 2The stock market, where individuals can buy shares of companies, is a key component of capitalist economies.
- 3Entrepreneurship, where individuals start and grow their own businesses, is highly encouraged and supported in capitalist systems.
- 4Real estate investment, where individuals can buy, sell, and rent properties, is a common way to accumulate wealth in capitalism.
Tags
economic-systemprivate-ownershipprofit-motivefree-marketentrepreneurship
Related Terms
Other terms you might find helpful
Free Market
A free market is an economic system where prices for goods and services are determined by the open market and consumers, with minimal government intervention.
Stock Market
The stock market is a collection of markets where stocks (shares of ownership in businesses) are bought, sold, and issued, reflecting the economic trends and the performance of companies.
Quick Info
Category:Investing
Difficulty:basic
Last Updated:6/18/2025