From the Online Etymology Dictionary:
Capitalism-A political/economic system which encourages capitalists.
From capital+ism
Capital-stock, property
ism-suffix forming nouns of action, state, condition, doctrine
ist-agent noun suffix, also used to indicate adherence to a certain doctrine or custom
So capitalism is simply a political/economic system which ecourages individual ownership of stock or property.
Market-sales, as controlled by supply and demand
Free-exempt from, not in bondage
A free market is a condition in which sales,as controlled by supply and demand, are exempt from bondage.
I bring this up because it has been a source of confusion on another thread.