What is Privatization?

We’re talking about privatizations each and every time when a company which is managed by the government is handed over in to private hands. If this happens then it’s stocks won’t be traded anymore on the stock market. There are a few reasons why is it a good idea to privatize government owned companies, at first because it’s more efficient, privately owned firms tend to maximize profits as much as they can and the government isn’t that concern with profits. Another reason is that the government wants to escape the role of being a provider for example running utility companies or telecommunications. And by selling these companies the government raises money for other projects.