Denationalization

DEFINITION of 'Denationalization'

The act of changing a government-run firm into a private-sector firm. In order to accomplish this transition, the government must either sell or otherwise redistribute the formerly government-run firm in a way that is equitable to citizens.

Denationalization is also known as "privatization".

BREAKING DOWN 'Denationalization'

A recent example of denationalization can be found in the formerly government-owned Japan Post Group. This group of companies provided postal services, banking and insurance products in Japan. However, the group was unable to turn a profit under government management. As part of an ongoing campaign to cut government spending, the Japan Post Group was denationalized by the Japanese government.

RELATED TERMS
  1. Buy, Strip And Flip

    When a private equity firm buys out a target firm (usually with ...
  2. Welfare State

    A concept of government in which the state plays a key role in ...
  3. Private Sector

    The part of the economy that is not state controlled, and is ...
  4. Non-Client Order

    An order on an exchange made by a participant firm or on behalf ...
  5. Equitable Relief

    A court-granted remedy that requires a party to act or refrain ...
  6. Firm

    A firm is a business organization, such as a corporation, limited ...
Related Articles
  1. Retirement

    FAs Should Factor Clients Into Succession Plans

    Financial advisory firms are finally taking succession planning seriously. Here's how.
  2. Markets

    Explaining Limited Government

    Limited government is a political viewpoint that favors few, if any, government controls on individuals and the economy.
  3. Investing

    What is a Firm?

    A firm is a business or organization that sells goods or services on a for-profit basis.
  4. Managing Wealth

    Explaining Privatization

    For a publicly traded company, privatization is the act of transitioning the company to ownership by private individuals.
  5. Managing Wealth

    How To Invest In Private Companies

    It can be tough to invest in a company that doesn't trade on an exchange, but there are also several advantages.
  6. Managing Wealth

    How To Invest In Private Companies

    Owning a private firm means sharing more directly in the underlying firm’s profits.
  7. Markets

    A New Corporate Governance Initiative In Japan

    Expectations are low that Japan can create a corporate governance climate that meets global standards, but a new initiative is aimed at doing just that.
  8. Markets

    Japan's Heavy Exposure to Rising Rates

    While Japan has seen falling interest rates for over two decades, quantitative easing could mean this is about change. Just how exposed is the country?
  9. Retirement

    Financial Career Shift: Get In The Driver's Seat

    Before you agree to work for another investment firm, be sure you know what you're getting into.
  10. Markets

    Oligopoly

    Learn how a particular market can be controlled by a small group of firms.
RELATED FAQS
  1. What are the different groups involved in corporate governance?

    Learn about the challenges inherent to defining and executing corporate governance, and understand why different groups work ... Read Answer >>
  2. How does crowding out affect supply and demand in the private-sector?

    Understand how crowding out affects supply and demand in the private sector. Learn why government borrowing can be a negative. Read Answer >>
  3. What is the difference between private equity and venture capital?

    Learn the differences between private equity and venture capital, especially in terms of how these types of firms invest ... Read Answer >>
  4. How does a nation transition from a socialist economy to a free market economy

    Read about why and how markets transition from socialism to capitalism, and learn how privatization can become hijacked by ... Read Answer >>
  5. What is a typical price-to-book ratio in the financial services sector?

    Understand key distinctions of the financial services sector and learn some of the equity valuation metrics analysts use ... Read Answer >>
  6. What is the effect of a fiscal deficit on the economy?

    Take a deeper look into the real impacts of government budget deficits on the economy, and why government financing reduces ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center