Nationalization

Dictionary Says

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 Says

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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Privatization

    1. The transfer ...
  2. Deprivatization

    The act of ...
  3. Corporatization

    The act of ...
  4. Expropriation

    The act of ...
  5. Eminent Domain

    The power the ...
  6. Thrift Bank

    A financial ...
  7. Renationalization

    Bringing assets ...
  8. Condemnation

    The seizure of a ...
  9. Denationalization

    The act of ...
  10. Lehman Brothers

    A firm that was ...

Articles Of Interest

  1. State-Run Economies: From Public To Private

    Find out how former Iron Curtain countries used private enterprise to join the world financial markets.
  2. Why Public Companies Go Private

    Privatization can give management more time to make money for investors, but at what cost?
  3. The Globalization Of Financial Services

    The key to survival for many financial institutions will be to efficiently serve a global customer base.
  4. A History Of Wall Street Profitability

    Learn about the performance of the Dow Jones Industrial Averages (DJIA) through the decades.
  5. An Introduction To Behavioral Finance

    Curious about how emotions and biases affect the market? Find some useful insight here.
  6. 5 Things You Shouldn't Do During A Recession

    These tips can help you avoid financial risk, and are especially important during an economic slowdown.
  7. The Baltic Dry Index: Evaluating An Economic Recovery

    This index can provide insight into economic growth and production, but it has its critics.
  8. 4 ETF Strategies For A Down Market

    If the market's got you feeling low, these investments could pick you up.
  9. Disclaiming Inherited Plan Assets

    There are some good reasons for choosing not to accept the funds, but be sure you follow the proper process.
  10. How To Effectively Investigate A Stock

    Before throwing your money away, learn how to pick the right stock for your portfolio.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center