Democracy describes a socio-political structure in which power belongs to the people. It originates from the Greek word "demokratia."
In the most literal sense, Democracy means "the people rule" or "the people have power" and therefore describes any situation in which this is the case. Democracy is not about elections; there can be Democracy without elections, and there can be elections without Democracy. Democracy is in contrast to Autocracy and Aristocracy. In Autocracy, a single person rules. In Aristocracy, an elite class of persons rule.
One's understanding of Democracy depends on what they mean when they refer to "the people" - some persons may refer to the working class, or the general masses. Over time, this understanding has led to Democracy being used to refer to "majority rule" however some persons use "the people" to refer to everyone in society, not just a majority.