Denationalization

AAA

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".

INVESTOPEDIA EXPLAINS '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. Nationalization

    Refers to the process of a government taking control of a company ...
  2. Expropriation

    The act of taking of privately owned property by a government ...
  3. Privatization

    1. The transfer of ownership of property or businesses from a ...
  4. Corporatization

    The act of reorganizing the structure of government owned entity ...
  5. Eminent Domain

    The power the government has to obtain the property of an individual ...
  6. Economic Justice

    Economic justice is a component of social justice. It's a set ...
Related Articles
  1. How Fannie Mae And Freddie Mac Were ...
    Economics

    How Fannie Mae And Freddie Mac Were ...

  2. Fannie Mae and Freddie Mac, Boon Or ...
    Insurance

    Fannie Mae and Freddie Mac, Boon Or ...

  3. From Booms To Bailouts: The Banking ...
    Home & Auto

    From Booms To Bailouts: The Banking ...

  4. Adam Smith: The Father Of Economics
    Economics

    Adam Smith: The Father Of Economics

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center