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What is the difference between capitalization and privatization?
Wiki User
∙ 13y ago
Privatization has to do with who ownes something, Government or Private sector.
Capitalization has to do which where the money is coming form to buy it.
This is just my own view. Someone else may have a better answer.
Wiki User
∙ 14y ago
Wiki User
∙ 13y agoPeople get privatization confused with private company owned. Privatization is actually capitalism taking it from the government, which is "so called public owned by the people", to private owned by an individual entity! Literally it sounds the opposite but in reality capitalism and privatization is free market and better for the economy, which in essence benefits the people.
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Commercialization is the process of making a business or product more public. Privatization is the opposite process in terms of conducting the business.
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Privatization is the act of selling Government owned business to the private sector. Whereas, Nationalization occurs when the government buys certain business or firms from private owners.
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Divestiture is the process of a legal person selling some assets. Privatization is the process of a government or state selling its ownership of assets it owns (usually utilities) by placing them on the Stock Market for private legal persons to buy. Thus privatization is a form of divestiture.
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