privatization

Definitions (2)

1. The repurchasing of all of a company's outstanding stock by employees or a private investor. As a result of such an initiative, the company stops being publicly traded. Sometimes, the company might have to take on significant debt to finance the change in ownership structure. Companies might want to go private in order to restructure their businesses (when they feel that the process might affect their stock prices poorly in the short run). They might also want to go private to avoid the expense and regulations associated with remaining listed on a stock exchange. also called going private. opposite of going public.
2. The process of moving from a government-controlled system to a privately run, for-profit system.

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privately held corporation privilege