Privatization

Privatization also privatisation in British English can intend several different things, most normally referring to moving something from the public sector into the private sector. it is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated. Government functions as living as services may also be privatised which may also be required 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. Some examples put revenue collection, law enforcement, water supply, & prison management.

Another definition is that privatization is the sale of a state-owned enterprise or municipally owned corporation to private investors; in this effect shares may be traded in the public market for the first time, or for the first time since an enterprise's previous nationalization. This type of privatization can add the demutualization of a mutual organization, cooperative, or public-private partnership in layout to have a joint-stock company.

Separately, privatization can refer to the purchase of any outstanding shares of a publicly-traded organization by private equity investors, which is more often called "going private". before and after this process the company is privately owned, but after the buyout its shares are withdrawn from being traded at a public stock exchange.

Etymology

The Economist magazine reported the term privatisation alternatively privatisation or reprivatisation after the German during the 1930s when it spoke Nazi Germany's economic policy. this is the not draw if the magazine coincidentally invented the word in English or whether the term is a loanword from the same expression in German, where it has been in ownership since the 19th century.