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. Private Equity

    Private Equity is equity capital that is not quoted on a public ...
  5. Non-Client Order

    An order on an exchange made by a participant firm or on behalf ...
  6. Repackaging

    When a private equity firm takes a public firm private by purchasing ...
Related Articles
  1. Insurance

    A Primer On Private Equity

    Private equity investing is becoming more accessible for individual investors; find out how you can get involved.
  2. Insights

    Explaining Limited Government

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

    What is a Firm?

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

    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. Small Business

    How To Invest In Private Companies

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

    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. Insights

    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. Investing

    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.
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. What percentage of asset management firms are privately held and not publicly traded?

    Explore asset management firms, a major part of the financial services sector, and learn about the respective markets served ... Read Answer >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center