State-Owned Enterprise - SOE

AAA

DEFINITION of 'State-Owned Enterprise - SOE'

A legal entity that is created by the government in order to partake in commercial activities on the government's behalf. A state-owned enterprise (SOE) can be either wholly or partially owned by a government and is typically earmarked to participate in commercial activities.

INVESTOPEDIA EXPLAINS 'State-Owned Enterprise - SOE'

Also known as government-owned corporations (GOC), state-owned entities should not be confused with companies with stocks that are owned in part by a government body, since these companies are truly public corporations which happen to have a government entity as one of their shareholders. SOEs are common across the globe, including in the U.S where mortgage companies Freddie Mac and Fannie Mae are considered government-sponsored enterprises (GSEs).

RELATED TERMS
  1. Federal Housing Finance Agency ...

    A U.S. government agency created by the Housing and Economic ...
  2. Crown Corporation

    Any corporation that is established and regulated by a country's ...
  3. Fannie Mae - Federal National Mortgage ...

    A government-sponsored enterprise (GSE) that was created in 1938 ...
  4. Quasi-Public Corporation

    A type of corporation in the private sector that is backed by ...
  5. Government-Sponsored Enterprise ...

    Privately held corporations with public purposes created by the ...
  6. Freddie Mac - Federal Home Loan ...

    A stockholder-owned, government-sponsored enterprise (GSE) chartered ...
Related Articles
  1. Economics

    How Fannie Mae And Freddie Mac Were Saved

    These mortgage giants had to be put under government conservatorship, driving home the gravity of the subprime crisis.
  2. Bonds & Fixed Income

    The Treasury And The Federal Reserve

    Find out how these two agencies create policies to stimulate the economy in tough economic times.
  3. Insurance

    Fannie Mae and Freddie Mac, Boon Or Boom?

    These two companies are crucial to the mortgage market, but are they ticking timebombs?
  4. Insurance

    Top 6 U.S. Government Financial Bailouts

    U.S. bailouts date all the way back to 1792. Learn how the biggest ones affected the economy.
  5. Bonds & Fixed Income

    Profit From Mortgage Debt With MBS

    Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing.
  6. Insurance

    Fannie Mae, Freddie Mac And The Credit Crisis Of 2008

    Is the U.S. Congress' failure to rein in these mortgage giants to blame for the financial fallout?
  7. Stock Analysis

    Is It Time To Shun Altria Group?

    If you're in the market for a high-yielding dividend stock with an unmatched history of shareholder returns, then you can't do better than Altria Group .
  8. Stock Analysis

    Free Cash Flow Separates Delta From The Pack

    The U.S. airline industry has experienced a stunning revival in the past few years. No need to look hard to find airlines with doubledigit profit margins.
  9. Stock Analysis

    How Realty Income Became A Top Dividend Stock?

    Real-estate investment trusts have gained in popularity over the years as income investors look for reliable stream of cash from their portfolios.
  10. Stock Analysis

    Is Ariad On Track To Lose More Shares?

    The past two years have been a roller-coaster ride that shareholders in cancer-focused biotech Ariad Pharmaceuticals won't soon forget.

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center