Nationalization
 |
Definition of 'Nationalization'Refers to the process of a government taking control of a company or industry, which can occur for a variety of reasons. When nationalization occurs, the former owners of the companies may or may not be compensated for their loss in net worth and potential income.Nationalization is most common in developing countries subject to frequent leadership and regime changes. In these instances, nationalization is often a way for a government to expand its economic resources and power. The opposite of nationalization is privatization, when government-owned companies are spun off into the private business sector. |
 |
Investopedia explains 'Nationalization'In the United States, true nationalization is a rare occurrence. The last true nationalization of an industry was the government takeover of airport security after the September 11th tragedies in 2001. Prior to that, there were some selective nationalizations of savings and loan institutions in the early 1980s, as well as much of the railroad industry in the 1970s.Many have argued that the government takeover of a number of failing companies, such as GM and AIG, has also amounted to nationalization, even though the U.S. government exerts very little control over these companies. |
Related Definitions
Articles Of Interest
-
State-Run Economies: From Public To Private
Find out how former Iron Curtain countries used private enterprise to join the world financial markets. -
The Globalization Of Financial Services
The key to survival for many financial institutions will be to efficiently serve a global customer base. -
Why Public Companies Go Private
Privatization can give management more time to make money for investors, but at what cost? -
Financial Risks That Don't Pay Off: The Cost Of Reckless Financial Behavior
Despite the recessions, citizens continue to take financial risks and spend outside of their means without fully appreciating the potential consequences for both themselves and the wider economy. -
Why High-Income Earners Are Not Safe From The Threat Of Bankruptcy
Few people have much sympathy for the woes of those earning six figure or more each year. But, given that high-income earners drive economic expansion, the risks and problems facing high earners ... -
5 Businesses That Started During A Recession
These companies found success despite being started during economic downturns. -
Dealing With 10 Coworker Personality Conflicts
The financial world is filled with dysfunctional workers; find out if you're one of them and what you can do about it. -
6 Ways Mentors Elevate Your Career
Find out how experienced and credible mentors can get you where you want to go. -
A Peek Into Shareholder Meetings
Shareholder meetings can be glamorous, exciting or controversial, but not particularly revelational. Here's a quick look at what to expect. -
Maintaining Work/Life Balance For Financial Professionals
Maintaining work/life balance is a challenge for most professionals in the finance industry, but it doesn't have to be that way.
Free Annual Reports