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. Equitable Relief

    A court-granted remedy that requires a party to act or refrain ...
  2. Repackaging

    When a private equity firm takes a public firm private by purchasing ...
  3. Club Deal

    A private equity buyout or the assumption of a controlling interest ...
  4. Going Public

    The process of selling shares that were formerly privately held ...
  5. Firm

    A firm is a business organization, such as a corporation, limited ...
  6. Net Debt Per Capita

    A measurement of the value of a government's debt expressed in ...
Related Articles
  1. Retirement

    FAs Should Factor Clients Into Succession Plans

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

    What is a Firm?

    A firm is a business or organization that sells goods or services on a for-profit basis.
  3. Investing Basics

    Explaining Privatization

    For a publicly traded company, privatization is the act of transitioning the company to ownership by private individuals.
  4. Investing News

    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.
  5. Economics

    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?
  6. Investing News

    How Is the Bank of Japan Monetizing Government Debt?

    With its massive QE program and more recent adoption of negative interest rates, it looks like the BOJ is monetizing the Japanese government's debt.
  7. 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.
  8. Markets

    Valuing Private Companies

    You may be familiar with publicly-traded companies, but how much do you know about privately-held firms?
  9. Economics

    Oligopoly

    Learn how a particular market can be controlled by a small group of firms.
  10. Investing Basics

    Private Equity Fundamentals

    Investopedia explains what private equity is through a concise video.
RELATED FAQS
  1. 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 >>
  2. How do government stimuli increase the number of jobs in the private sector?

    Learn how government stimuli increases the number of jobs in the private sector by increasing consumers' purchasing power ... Read Answer >>
  3. How does limited government affect corporate citizens?

    Read about the role of consumers and governments, especially limited governments, in supporting or requiring good corporate ... 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. How does privatization affect a company's shareholders?

    The most recognized transition between the private and public markets is an initial public offering (IPO). Through an IPO, ... Read Answer >>
  6. 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 >>
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