The term "monopoly" in the modern economic theory has negative coloring as does not allow the competition in a certain industry. However monopolism is an integral part of any capitalist of the developed state, has considerable impact on country life.
The word "monopoly" comes from Greek - "I sell one" and has two values. First, this large economic association which acts on the market in conditions of almost total absence of competitors. Secondly, it is a market situation in the industry where such organization works. The history of emergence of monopolies is inseparably linked with development of the following major economic processes: growth of joint-stock property and merge of the companies in large corporations for the purpose of centralization of the capital, development of a banking system, emergence of new forms of capitalist associations. Joint-stock companies and the companies were organized by centralization of money owing to sale of shares and other securities of the organization. In the developed capitalist countries such companies expanded to the sizes of the corporations which are association of persons (shareholders) who are carrying out monetary contributions to the general capital. This capital was used by shareholders in a certain share for conducting business activity. Income generation and execution of losses was also exposed to percentage transfer for each participant. Activity of shareholders was optional conducted in one branch of economy, such corporations received the name of the holdings which are carrying out trade and production. Emergence of corporations led to increase in volumes of the financial transactions passing through banking sector that, in turn, led to development of a banking system. In this system as in any economic sector, laws of centralization of the monetary capital worked, small noncompetitive banks were absorbed by larger or ruined. As a result to the forefront there were not numerous, but largest financial organizations and bank associations (cartels and syndicates) which concentrated in the hands huge amounts of money and monopolies on management of all financial transactions. Moreover, the largest banks secretly united in larger communities, and competition between them turned into cruel fight. Thereby, the lion's share of money turnovers of all economic associations submitted to stricter control. New forms of capitalist associations during an era of formation of monopolism are cartels and syndicates; more difficult - trusts and concerns. The cartel is merging of several firms working in one production sphere, each of which keeps the property right both to means of production, and to the made product and its realization, agreeing about individual share in the general capital. Syndicate – the same no that cartel except that firms keep the property right to means of production, but is had by opportunities to dispose of the made goods which are implemented by the general office of sale. The trust can be delicious of firms of both one, and several industries of production, at the same time participants have no property right neither to means of production, nor to products, and get profit depending on a share of joint-stock participation. Diversified concern – huge community of the companies (from several dozen to hundreds of enterprises) in various industries. The main financial control in concern is exercised by the main (managing director) company which manages work of all participating organizations. Despite the obvious power of monopolists in the controlled industry, it is impossible to consider any monopoly "clean". At this definition there is always a certain share of convention as in real economies it is difficult to find the industry in which the one and only company would dominate. Nevertheless, control of monopolies is extremely high in the countries of the developed capitalism though the state always reserves the right of monopoly for certain industries of production, for example, on tobacco or alcohol.