What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community.

Invisible hand

The invisible hand is the natural tendency of individuals that seek their own self-interest to further society as a whole through competition in the marketplace.

Expanded Definition

The "invisible hand of the market" is attributed to Scottish economist Adam Smith in The Wealth of Nations. Although it's often used to describe free market capitalism and associated with modern corporations as well as individuals, when Smith coined the term he was referring to individuals' dealings with one another.

Related Fool Articles

Related Community Blogs

Related Terms

Recent Mentions on Fool.com