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Disinvestment means selling of a public investment to a ___________:
  • a)
    Private enterprises 
  • b)
    Public enterprises 
  • c)
    Capital market 
  • d)
    Departmental enterprises 
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Disinvestment means selling of a public investment to a ___________:a)...
The Government can sell its enterprises completely to the private sector or disinvest a part of its equity capital held by it to the private sector companies or in the open market. Distinction may be drawn between disinvestment and privatisation. Strictly speaking, disinvestment means the dilution of stake of the Government in a public enterprise. This can be done in two ways. When the Government sells a part of its equity of a public enterprise less than 50 per cent of its total stock, it is called merely disinvestment and in this case control and management of the business enterprise remains in the hands of Government.
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Disinvestment means selling of a public investment to a ___________:a)Private enterprisesb)Public enterprisesc)Capital marketd)Departmental enterprisesCorrect answer is option 'A'. Can you explain this answer?
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