Categories
- Glossary
- Economy
- Insurance
- Equity
- Transportation
- sports
- Space Technology
- Entertainment
- Astronomy
- Analytics
- Commodity
- Education
- Finance
- Human-Resource
- Mutual Fund
- Mathematics
- Real-Estate
- Marketing
- Security
- Shipping
- Retail
- HR
- Software-Development
- Testing
- Budget
Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
Economy
- PREV DEFINITION
Principle Agent Problem
See AlsoPrivatisation Of Markets: Examples & Features...What Would Privatized Social Security Mean for Americans?Privatization - Meaning, Examples, Advantages, DisadvantagesThe principle agent problem arises when one party (agent) agrees to work in favor of another party (principle) in return for some incentives.
Read More
- NEXT DEFINITION
Producer Surplus
Producer surplus is defined as the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade.
Read More
Definition: The transfer of ownership, property or business from the government to the private sector is termed privatization. The government ceases to be the owner of the entity or business.
The process in which a publicly-traded company is taken over by a few people is also called privatization. The stock of the company is no longer traded in the stock market and the general public is barred from holding stake in such a company. The company gives up the name 'limited' and starts using 'private limited' in its last name.
Description: Privatization is considered to bring more efficiency and objectivity to the company, something that a government company is not concerned about. India went for privatization in the historic reforms budget of 1991, also known as 'New Economic Policy or LPG policy'.
Watch the video here:
Read More News on
- PRIVATIZATIONBUSINESSSTOCKMARKET
- PROPERTYLPG
- PREV DEFINITION
Principle Agent Problem
The principle agent problem arises when one party (agent) agrees to work in favor of another party (principle) in return for some incentives.
Read More
- NEXT DEFINITION
Producer Surplus
Producer surplus is defined as the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade.
Read More
Related Definitions
- Asset Turnover RatioAsset turnover ratio is the ratio between the value of a company’s sales or revenues and the value of its assets. It is an indicator of the efficiency with which a company is deploying its assets to produce the revenue. Thus, asset turnover ratio can be a determinant of a company’s performance. The higher the ratio, the better is the company’s performance. Asset turnover ratio can be different froAusterity economic growth of country is determined by factors such as Capital structure, Human resources, Natural resources and revenue generation of businesses operating within the nation. A decline in the economic development can impact all the four factors of a government system. One of the main contributors of decline in the economic system is debts. A country borrows money from creditors, with the vieBailoutBailout is a general term for extending financial support to a company or a country facing a potential bankruptcy threat. It can take the form of loans, cash, bonds, or stock purchases. A bailout may or may not require reimbursem*nt and is often accompanied by greater government oversee and regulations.The reason for bailout is to support an industry that may be affecting millions of people inBalance Of PaymentAccording to the RBI, balance of payment is a statistical statement that shows1. The transaction in goods, services and income between an economy and the rest of the world,2. Changes of ownership and other changes in that economy’s monetary gold, special drawing rights (SDRs), and financial claims on and liabilities to the rest of the world, and3. Unrequited transfers.Description: The tran
- Bank RateBank rate is the rate charged by the central bank for lending funds to commercial banks. Description: Bank rates influence lending rates of commercial banks. Higher bank rate will translate to higher lending rates by the banks. In order to curb liquidity, the central bank can resort to raising the bank rate and vice versa.Also See: Base Rate, Call Money RateBarter the hard currency came into existence, the most common form of trade was bartering. Barter Systemdates back to the old time when there was no money. The only way to buy goods was to exchange them with personal belongings of similar value. For example- A farmer gives his cattle in exchange for some land, and so on. In simple words, any exchange of goods and services for other goods and services wiBase RateBase rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers. Description: Base rate is decided in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers. Loan pricing will be done by adding base rate and a suitable spread depending on the credit risk premium.AlsBasel IiiThe third Basel accord or Basel-III is the cornerstone of banking supervision in the world. Framed by a committee of elite central bankers, the accord provides the guidelines for prudent supervision of banks all over the world and sets the standard for such supervision.Description: Basel-III is third in the series of accords following Basel-I and Basel-II. It was released in December, 2010, in
- BrexitIt is an abbreviation for the term “British exit”, similar to “Grexit” that was used for many years to refer to the possibility of Greece leaving the Eurozone. Brexit refers to the possibility of Britain withdrawing from the European Union (EU). The country will hold a referendum on its EU membership on June 23.Description: Why the Call for Referendum?When David Cameron became the prime miBrics the BRICS?BRICS is an acronym that started as BRIC in 2001, coined by Jim O’Neill (a Goldman Sachs economist) for Brazil, China, India, and Russia. Later in 2010, South Africa was added to become BRICS. Goldman Sachs claimed that the global economy will be dominated by the four BRIC economies by 2050. The main reason for such a claim was that China, India, Brazil, Russia, and South Africa were ra
Related News
FM Sitharaman says door wide open for private players as no sector is exclusive for the governmentFinance Minister Nirmala Sitharaman has indicated a significant shift in India's economic policy by suggesting that private companies may soon be able to invest in all public sectors. This interview with The Economic Times echoes the Finance Bill 2021, which has already received cabinet approval.- Diminishing healthcare quality, worsening patient health outcome: Lancet study decries healthcare privatisationStudy in The Lancet magazine reveals that healthcare privatization globally lowers quality of care and worsens patient outcomes. Based on extensive research across high-income nations, it highlights the negative impact of converting public hospitals to private entities and outsourcing services. Concerns raised amid Supreme Court scrutiny over healthcare cost discrepancies
- Andhra Pradesh Lok Sabha Elections: Visakhapatnam to witness a 3-corner contestRuling Yuvajana Sramika Rythu Congress Party (YSRCP's) candidate Botsa Jhansi Lakshmi faces a tough battle in Visakhapatnam against Telugu Desam Party's Sri Bharat and Congress's P Sathyanarayana Reddy. Botsa Lakshmi is the wife of the State Education Minister and YSRCP senior leader, Botsa Satyanarayana.
- Stepping up its penetration in defense sector in the region, China is contemplating arms sales agreements with Saudi Arabia as the latter seeks to diversify its sources of weaponry and reduce dependence on the US and Russia.
- Tata Power lays out a capex of Rs 12000 crore this fiscalThe company's total installed power generation capacity across the categories has increased to 14.1 GW. In line with its renewable focus, the company has added 500MW capacity taking the total operational renewable capacity to 3.9GW. With completion of under construction projects of 2.7 GW, the clean and green source-based capacity will be close to 50% of its total installed capacity.
- As major airports go into private hands, AAI to diversify into airport management servicesSince government has planned to privatize most of the large airports, it is necessary that AAI finds new areas and places to deploy its workforce.
- India Budget seen pro-growth, prudent, and not so populistThe fiscal gap is expected to narrow to 5.9% of gross domestic product, from 6.4% in the current fiscal year, according to the survey median. The government is expected to fund it partly through record gross borrowing of 15.8 trillion rupees, or 11% higher than the current year.
- Here's why 2022 became a historic year for India-US relationsThe year 2022 has been a remarkable and historic year for the India-US relationship, top diplomats and experts from both sides feel and are confident that 2023 would be a momentous year for the ties between the world's largest and oldest democracies that will determine the future of technology and innovation.
- Air India goes to Tata Group for Rs 18,000 croreTata will pay Rs 18,000 crore to acquire Air India from the government -- of the total money 15% would go to the government and the rest will go in clearing debt. This follows the group of ministers known as the Air India Specific Alternative Mechanism approving the bid winner.
- Power engineers body condemns move to amend National Electricity Policy"All India Power Engineers Federation (AIPEF) condemns the government of India's move to amend the National Electricity Policy to facilitate the privatization of the power sector," the statement said.
Load More
Trending DefinitionsRailways Budget 2024Interim Budget 2024Budget 2024 New Tax RegimeIncome Tax in Budget 2024Debt fundsSensexNiftyRepo rateMutual fundGross domestic productData miningAdvertisingProductMonopolyCryptographyDepreciation
