Investor Glossary-monopolyInvestor Glossary-monopolyInvestor Glossary-monopolyInvestor Glossary-monopolyInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Monopoly

The HTML to link to this page
 

A monopoly is when one company dominates the market for a particular good or service.

There are two ways a monopoly can occur. A monopoly occurs when no other company is providing that same good or service. A monopoly also occurs when there is a single company that commands a significant majority of market share and thereby dominates the market for a particular good or service.

Since a monopoly has little or no competition, it has less reason to stay efficient or innovative. Usually there will be barriers of entry that keep other companies from entering the market and disrupting the monopoly. Legal barriers, including patents, place restrictions on other companies trying to enter the market. If a monopoly holds a patent on a good, no other company can sell that good, and the monopoly can stay a monopoly as long as it wishes. A natural barrier occurs if the startup cost is too high, or if the market would always give advantage to the original monopoly.



Rate this monopoly definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use