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. 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 >>
  2. 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 >>
  3. 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 >>
  4. How is free enterprise affected by monetary policy?

    Find out how state-run monetary policy changes a free enterprise system by adjusting market rates of interest and manipulating ... Read Answer >>
  5. What happens to insurance policies and variable annuities if the insurance company ...

    The idea of an insurance failing or going bankrupt is one that can be very frightening. However, when an insurance company ... Read Answer >>
  6. What metrics can be used to analyze a telecommunications company if they have very ...

    Learn which equity and enterprise value metrics are useful when analyzing a telecommunications company that has very low ... Read Answer >>
Related Articles
  1. Financial Advisor

    Introduction To Enterprise Value

    Learn how enterprise value can help investors compare companies with different capital structures.
  2. Personal Finance

    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 ...
  3. Investing

    3 Reasons Enterprise Products Stock Could Rise (EPD)

    So far, 2015 has not been kind to shares of Enterprise Products Partners (NYSE: EPD). While the midstream energy specialist has routinely beaten the S&P 500 on a total return basis, its negative ...
  4. Investing

    3 Key Takeaways From Enterprise Products' Earnings (EPD)

    Enterprise Products Partners (NYSE: EPD) released its first-quarter earnings on Thursday. Some investors might be shocked by its large revenue decline compared to this time last year. However, ...
  5. Investing

    Enterprise Products' Earnings: What to Watch (EPD)

    Enterprise Products Partners (NYSE: EPD) will release its first-quarter earnings on April 30. Normally, these sorts of things are rather boring affairs because so much of Enterprise's results ...
  6. Investing

    China’s Plan to Overhaul State-owned Companies

    In the midst of what appears to be a slowing economy, China’s government announced certain guidelines to revive the country’s state-owned sector and boost economic output.
  7. Investing

    Enterprise Buys $2.1 Billion in Low-Hanging Fruit (EPD, PXD)

    Earlier this week, Enterprise Products Partners (NYSE: EPD) agreed to purchase a cornucopia of pipeline and processing assets from Pioneer Natural Resources (NYSE: PXD) and Reliance Industries ...
  8. Investing

    5 Things Enterprise's Management Wants You to Know (EPD)

    Last week, Enterprise Products Partners (NYSE: EPD) reported first-quarter earnings. While the numbers looked good, but not great, some of the things that the company's management said during ...
  9. Investing

    Hewlett-Packard Earnings Miss Expectations

    HP Inc. and Hewlett Packard Enterprise are moving in the different directions.
RELATED TERMS
  1. Enterprise Multiple

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

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

    Enterprise mobility describes a trend in business where work ...
  4. General Examination

    A regulatory measure set up to give a detailed examination of ...
  5. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative ...
  6. International Finance Corporation

    The International Finance Corporation is an organization dedicated ...
Trading Center