Editing Privatization (section)

{{short description|Transferring something from the public sphere to the private}}
{{see also| List of privatizations by country }}

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'''Privatization''' (rendered '''privatisation''' in [[British English]]) can mean several different things, most commonly 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 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. Some examples include revenue collection, [[law enforcement]], [[Water privatization|water supply]], and [[penology|prison management]].<ref>Chowdhury, F. L. ‘’Corrupt Bureaucracy and Privatisation of Tax Enforcement’’, 2006: Pathak Samabesh, Dhaka.</ref>

Another 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]]. 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]].<ref name="crisis">{{Cite news |url=http://www.thenews.coop/35044/topic/democracy/musselburgh-co-op-crisis-privatisation-bid-fails/ |title=Musselburgh Co-op in crisis as privatization bid fails. |publisher=[[Co-operative Press|Co-operative News]] |date=2005-11-01 |access-date=2008-05-21 |archive-date=2017-12-22 |archive-url=https://web.archive.org/web/20171222053251/https://www.thenews.coop/35044/topic/democracy/musselburgh-co-op-crisis-privatisation-bid-fails/ |url-status=dead }}</ref>

Separately, privatization can refer to the purchase of all [[shares outstanding|outstanding shares]] of a [[public company|publicly traded]] company 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 Before and after this process the company is privately owned, but after the buyout its shares are withdrawn from being traded at a public [[stock exchange]].<ref name=":0">{{cite web|last=Fernando|first=Jason|title=Going Private Definition|url=https://www.investopedia.com/terms/g/going-private.asp|access-date=2021-08-05|website=Investopedia|language=en}}</ref><ref name=":1">{{cite web|last=Dumont|first=Marvin|title=Why Do Public Companies Go Private?|url=https://www.investopedia.com/articles/stocks/08/public-companies-privatize-go-private.asp|access-date=2021-08-05|website=Investopedia|language=en}}</ref>