The event that marked the transition from feudalism to capitalism in Europe was the Commercial Revolution. This significant shift occurred between the 11th and 18th centuries, driven by changes in trade practices, the emergence of new financial instruments, and the rise of merchant capitalism. As trade expanded, cities began to grow, providing opportunities for new economic activities and social mobility that contrasted with the rigid class structures of feudalism. The emergence of a money-based economy and a focus on individual entrepreneurship helped lay the foundation for modern economic systems.