DEFINITION of 'Expropriation'

The act of taking of privately owned property by a government to be used for the benefit of the public. In the United States, the government has the right to take property through eminent domain. The Fifth Amendment to the Constitution provides that private property will not "be taken for public use without just compensation." While there is compensation, the expropriation occurs without the property owner's consent.

BREAKING DOWN 'Expropriation'

Many, but not all, countries support the belief that the expropriating country should pay adequate, timely and effective compensation to the involved party. Properties taken through eminent domain are often used for public utilities, highways and railroads. Countries can also expropriate foreign businesses located within the country. Former socialist Chilean President Salvador Allende, for example, expropriated U.S. businesses located in Chile in the early 1970s.

  1. Just Compensation

    Compensation provided to an owner whose private real property ...
  2. Nationalization

    Refers to the process of a government taking control of a company ...
  3. Eminent Domain

    The power the government has to obtain the property of an individual ...
  4. Disinvestment

    1. The action of an organization or government selling or liquidating ...
  5. Privatization

    1. The transfer of ownership of property or businesses from a ...
  6. National Treatment

    A concept of international law that declares if a state provides ...
Related Articles
  1. Stock Analysis

    The Biggest Risks of Investing in Schlumberger Stock

    Learn about risks investors face by buying shares in Schlumberger. Understand how the company has exposure to commodity prices and international uncertainty.
  2. Economics

    What China's New Policy Means for Business

    Now that China has eliminated its one-child policy, how will the new policy impact businesses?
  3. Insurance

    Avoid the Obamacare No-Insurance Penalty by Jan. 31

    If you don't have health insurance, act NOW or you could owe penalties on your 2016 taxes, in addition to this year's.
  4. Economics

    How to Invest in the Philippines' Stock Market

    The Philippines offers more long-term growth potential than most economies around the world. Here's how to play it.
  5. Economics

    Explaining Devaluation

    Devaluation is the deliberate decrease in one county’s currency relative to the currency of other countries.
  6. Personal Finance

    Read This Before Taking $10K+ to the Philippines

    There are many reasons why you might need to go to the Philippines with more than $10,000. If you do, follow these guidelines to avoid penalties.
  7. Investing News

    3 Risks Japanese Companies Face

    Japan’s stock market has strengthened under the Abe administration, but it isn’t a panacea for Japanese companies.
  8. Economics

    4 Factors That Shape Market Trends

    Market trends are shaped by larger economic factors, such as government influence, internal transactions, speculation and supply and demand.
  9. Economics

    The Pros and Cons of Being a Nonprofit

    Evaluating the tradeoffs organizations face when choosing between becoming a tax-exempt nonprofit or for-profit business with innovative ease.
  10. Markets

    Why The Trans-Pacific Trade Partnership Is Good News For American Companies

    Even though the full text of TPP is not yet available, preliminary indications are that it will benefit American companies. This article explains why.
  1. Is the United States considered a market economy or a mixed economy?

    The United States has always been a mixed economy, although there were periods in U.S. history when it was closer to a true ... Read Full Answer >>
  2. 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 Full Answer >>
  3. If I reject the tender offer for acquisition of the stock that I own in a company ...

    Since the passing of the Sarbanes-Oxley Act, a significant number of public companies have chosen to go private. The reasons ... Read Full Answer >>
  4. What's the difference between publicly- and privately-held companies?

    Privately-held companies are - no surprise here - privately held. This means that, in most cases, the company is owned by ... Read Full Answer >>
  5. Can FHA loans be used for condos?

    A borrower can obtain Federal Housing Administration (FHA) loans to finance the purchase of a condominium as long as the ... Read Full Answer >>
  6. Can I get dental insurance with Medicare?

    Medicare does not offer dental insurance that will cover dental care and medical supplies, such as cleanings, sealants, extractions, ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  2. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  3. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  4. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  5. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
  6. Discount Bond

    A bond that is issued for less than its par (or face) value, or a bond currently trading for less than its par value in the ...
Trading Center