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. -
Why Public Companies Go Private
Privatization can give management more time to make money for investors, but at what cost? -
The Globalization Of Financial Services
The key to survival for many financial institutions will be to efficiently serve a global customer base. -
The Path To Becoming A CEO
Think you have what it takes to be chief executive? Find out what those at the top have in common. -
Lessons Learned From the Banking Crisis
There are lessons to be learned on how to handle severe financial downturns, and while the Fed is learning, politicians may not be. -
Wall Street Writers: A Behind-The-Scenes Career
Regulators, sales people and clients all look to communications professionals to help them navigate the markets. -
Wall Street’s Glass Ceiling
It’s tough to boast that there are more female CEOs than ever before when they make up only 4.2% of the total. -
Internships: Find The Best One For You
It only takes a little legwork to land a prestigious career while you're still in college. -
How Companies Can Attract Top Female Employees
Companies need to make an effort to learn how to attract and retain female employees in order to achieve a greater gender balance in the workplace. -
Build Your Small Business During Downswings
Here we offer some cost-saving measures to strengthen your business even when the market is weak.
Free Annual Reports
