Institutions of Capitalism

Institutions of capitalism are the structures and systems that organize economic activity within a capitalist society. They include legal frameworks like property rights and contract laws, financial systems such as banks and stock markets, and organizations that facilitate competition and innovation, like firms and markets. These institutions enable individuals and companies to buy, sell, invest, and innovate with confidence, fostering economic growth and efficiency. They also establish rules to regulate economic behavior, protect rights, and resolve disputes, creating an environment where private enterprise can thrive and resources are allocated efficiently based on market forces.