© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Free Trade

Definition:

Trade in which the government doesn't stick its nose. Adam Smith was a big believer in it.

Basically, it means that the markets decide on trade and prices, not the government. There are no taxes or other incentives out there to affect things.