Expropriation

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Privatization

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

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

    A concept of international law that declares if a state provides ...
  6. Eminent Domain

    The power the government has to obtain the property of an individual ...
Related Articles
  1. What's the difference between publicly- ...
    Investing

    What's the difference between publicly- ...

  2. How does privatization affect a company's ...
    Investing

    How does privatization affect a company's ...

  3. If I reject the tender offer for acquisition ...
    Investing

    If I reject the tender offer for acquisition ...

  4. Who regulates a credit rating agency?
    Personal Finance

    Who regulates a credit rating agency?

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center