Question

Sale of shares of public sector companies to private individuals or institutions is known as:

• A. Disinvestment
• B. Liberalisation
• C. Globalisation
• D. Outsourcing

Answer 1

Answer:

A. Disinvestment

The sale of shares of public sector companies to private individuals or institutions is known as disinvestment.

Disinvestment refers to the process where the government reduces its stake in a public sector enterprise (PSE) by selling its shares to private players or the general public. This can be done to raise funds, improve efficiency, and promote greater competition in the market. Disinvestment can also be a part of a broader strategy to reduce the government's role in business and to promote privatization.

In India, disinvestment has been an ongoing process since the 1990s, as part of efforts to reform the public sector and enhance economic growth.