The purest form of capitalism is free-market or laissez-faire capitalism. Here, private individuals are unrestrained. They may determine where to invest, what to produce or sell, and at which prices to exchange goods and services. The laissez-faire marketplace operates without checks or controls. Today, most countries practice a mixed capitalist system that includes some degree of government regulation of business and some extent of public ownership of select industries. Production in a capitalist system is driven by the forces of supply and demand in the overall market, known as a market economy. This does not occur in a planned economy or a command economy where prices are determined via the use of central planning.

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