Whats the Difference

[db]

Between privatisation and floating on the stock market?
Not really up on the politics of stuff like this!

[newtimes]

Between privatisation and floating on the stock market?
Not really up on the politics of stuff like this!

Privitisation is when RM is sold off via shares which are traded on the stock market. The value of the share is what is traded at when they are bought and sold.

[db]

Between privatisation and floating on the stock market?
Not really up on the politics of stuff like this!

Privitisation is when RM is sold off via shares which are traded on the stock market. The value of the share is what is traded at when they are bought and sold.

So it's basically the same thing?

[TrueBlueTerrier]

No.

Privatisation is the selling off of a Government owned business to the private sector, normally to one company or a consortium of them.

The dictionary definition is:

1. The transfer of ownership of property or businesses from a government to a privately owned entity.

2. The transition from a publicly traded and owned company to a company which is privately owned and no longer trades publicly on a stock exchange. When a publicly traded company becomes private, investors can no longer purchase a stake in that company.


Floating it means offering shares on the stock market so that anyone and everyone can buy them.

[newtimes]

No.

Privatisation is the selling off of a Government owned business to the private sector, normally to one company or a consortium of them.

The dictionary definition is:

1. The transfer of ownership of property or businesses from a government to a privately owned entity.

2. The transition from a publicly traded and owned company to a company which is privately owned and no longer trades publicly on a stock exchange. When a publicly traded company becomes private, investors can no longer purchase a stake in that company.


Floating it means offering shares on the stock market so that anyone and everyone can buy them.

I have got to disagree on the last part "everyone can buy them", only people with access to finance can buy them.

[RobertT]

Between privatisation and floating on the stock market?
Not really up on the politics of stuff like this!

The privatisation of a publicly owned business simply means selling it to someone else. That could mean selling to one other company, a consortium of several companies, or floating it on the stock market so that it's 'owned' by institutional investors like fund managers, etc and the general public.

The dictionary definition is:

1. The transfer of ownership of property or businesses from a government to a privately owned entity.

2. The transition from a publicly traded and owned company to a company which is privately owned and no longer trades publicly on a stock exchange. When a publicly traded company becomes private, investors can no longer purchase a stake in that company.

These definitions come from an American website so don't necessarily apply here.