Frequently Asked Question
Can a company be state-run and publicly traded at the same time?
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.