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'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 >>
  3. 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 >>
  4. What is the difference between market capitalization and enterprise value?

    Understand the basics of market capitalization and enterprise value, how they measure company value and how they differ in ... 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. How does capitalism work in a mixed economy?

    Read about how the forces of capitalism change in a mixed economy, and why governments intervene in voluntary exchanges to ... Read Answer >>
Related Articles
  1. Fundamental Analysis

    Explaining Enterprise Multiple

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

    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. Stock Analysis

    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, ...
  4. Stock Analysis

    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 ...
  5. Stock Analysis

    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 ...
  6. Stock Analysis

    Is Insider Buying at Enterprise a Bullish Sign? (EPD)

    This past week, insiders at Enterprise Products Partners (NYSE: EPD) bought $100 million of the company's common units. While that is a lot of money, it is important to note that the investment ...
  7. Term

    Advantages of Public Vs. Private Companies

    A privately held company is owned by its founder, management or a group of private investors.
  8. Stock Analysis

    Death Industry Consolidates-Time To Buy Service Corporation's Stock?

    Service Corporation, the largest funeral company in America, announced May 29 that it was buying Stewart Enterprises, the number two company in the funeral business for $1.4 billion including ...
  9. Investing News

    HPE Price Target Raised at BMO Capital (HPE, HPQ)

    After its split from HP, Inc., Hewlett Packard Enterprise is blazing its own trail. And it wants to start off by being generous with its cash.
  10. Investing

    Exxon Mobil Stock: Capital Structure Analysis (XOM)

    Investigate Exxon Mobil's capital structure and understand how equity, debt capitalization and enterprise value interact with each other.
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. 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. Social Enterprise

    An organization that is directly involved in the sale of goods ...
  6. Small And Midsize Enterprises - SME

    A business that maintains revenues or a number of employees below ...
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center