In German, the word Privatisierung has been used since at least the 19th-century. The term ‘ privatizing’ first appeared in English, with quotation marks, in the New York Times, in April 1923, in a translation of a German speech referring to the potential for German state railroads to be bought by American companies. 6.1 Contrasting cases in Eastern Europe: Romania and East Germany.Before and after this process the company is privately owned, but after the buyout its shares are withdrawn from being traded at a public stock exchange. Separately, privatization can refer to the purchase of all outstanding shares of a publicly-traded company by private equity investors, which is more often called "going private". This type of privatization can include the demutualization of a mutual organization, cooperative, or public-private partnership in order to form a joint-stock company. Īnother definition is that privatization is the sale of a state-owned enterprise or municipally owned corporation to private investors in this case shares may be traded in the public market for the first time, or for the first time since an enterprise's previous nationalization. Some examples include revenue collection, law enforcement, water supply, and prison management. Government functions and services may also be privatised (which may also be known as "franchising" or "out-sourcing") in this case, private entities are tasked with the implementation of government programs or performance of government services that had previously been the purview of state-run agencies. It is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated. Privatization (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector.
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