Capitalism refers to the economic system characterized by the following points:

Private property ownership is prevalent, as opposed to widespread commons seen in feudalism or socialism.

Free Markets, were individuals and companies are generally allowed to freely compete for their own economic gain. Where widespread restrictions on production and exchange are avoided.

Capitalists believe that markets lead to the most efficient use of resources, and therefore markets should function with little interference. In capitalist systems, the economic role of the state is to regulate markets (for example, ensuring some minimum standards to ensure public health and safety), protecting competition from monopoly and enforcement of contracts.