A:

A state-run company or enterprise cannot be publicly traded in the U.S. However, it is possible to purchase shares of state-run companies in some foreign countries, like China and India. According to the Administrative Law of State-Run Enterprise, a state-run company is defined as:



  • An enterprise that is solely owned by the state; or
  • An enterprise which, in accordance with special regulations, is jointly owned by the state and private individuals; or
  • An enterprise which, in accordance with company law, is jointly owned by the State and private individuals where the state holds more than 50% of capital.

State-run enterprises may, with the approval of the government, issue corporate bonds. In addition, enterprises can issue stocks, but shares must be placed under the custody of the national treasury. State-run enterprises are required to turn over their profits to the national treasury following annual audits. (For further reading, check out State-Run Economies: From Public To Private.)



RELATED FAQS
  1. How is it possible for a company to have a negative enterprise value?

    Learn about enterprise value and how value investors use it to find good companies with undervalued stocks. Negative enterprise ... Read Answer >>
  2. What is the difference between free enterprise and capitalism?

    Read about the differences between free enterprise and capitalism, and how it is possible to conceive of one system existing ... Read Answer >>
  3. What's the difference between enterprise value and market capitalization?

    Learn the difference between two commonly utilized valuation tools: market capitalization and enterprise value, and see how ... Read Answer >>
  4. What is the difference between enterprise value and equity value?

    Valuating a business accurately depends heavily on the purpose of the valuation. Learn how enterprise value and equity value ... Read Answer >>
  5. When consolidating financials, how do you calculate Enterprise Value in cases that ...

    Read about the impact of minority interests in the calculation of Enterprise Value in consolidation cases that involve minority ... Read Answer >>
  6. What economic measures can be taken to encourage free enterprise?

    Learn about the types of economic policies that support free market capitalism, as espoused by thinkers in the classical ... Read Answer >>
Related Articles
  1. Investing

    Explaining Enterprise Multiple

    The enterprise multiple is a ratio used to value a company as if it was going to be acquired.
  2. Investing

    Introduction To Enterprise Value

    Learn how enterprise value can help investors compare companies with different capital structures.
  3. Markets

    What's Free Enterprise?

    Free enterprise is the economic term used to describe an economy with very little government ownership or regulation. In a free enterprise system, competition and the preferences and choices ...
  4. Investing

    The Difference Between Enterprise Value and Equity Value

    Enterprise value calculates a business’s current value, while equity value offers a snapshot of that business’s current and potential future value.
  5. Investing

    Value Investing Using The Enterprise Multiple

    This simple measure can help investors determine whether a stock is a good deal.
  6. Investing

    HP Enterprise Follows Up One Spin Off With Another

    Hewlett-Packard Enterprise (NYSE: HPE) recently announced that it will spin off its enterprise services unit and merge it with Computer Sciences (NYSE: CSC). It claims that the merger will "create ...
  7. Investing

    3 Reasons HP Splitting into Two Companies is a Good Idea (HPQ)

    Learn about the Hewlett-Packard Company and why it has faced a declining business since 2010. Understand why it is splitting into two businesses.
  8. Investing

    Advantages of Public Vs. Private Companies

    A privately held company is owned by its founder, management or a group of private investors.
  9. Markets

    Coca-Cola Enterprises to Trade Ex-Dividend (CCE)

    CCE stock, priced at just 19 times earnings, looks attractive for the long term, especially when combined with its above-average dividend yield.
  10. Markets

    GM Stock: Capital Structure Analysis

    Learn why GM's enterprise value increased, and get an update on the company's capital structure, including equity and debt capitalization.
RELATED TERMS
  1. China ETF

    Exchange-traded funds that invest in and track the equity stakes ...
  2. Enterprise Multiple

    A ratio used to determine the value of a company. The enterprise ...
  3. Free Enterprise

    An economic system where few restrictions are placed on business ...
  4. Enterprise Mobility

    Enterprise mobility describes a trend in business where work ...
  5. Social Enterprise

    An organization that is directly involved in the sale of goods ...
  6. General Examination

    A regulatory measure set up to give a detailed examination of ...
Trading Center