Quasi-Public Corporation
A type of corporation in the private sector that is backed by a branch of government that has a public mandate to provide a given service. Most quasi-public corporations began as government agencies, but have since become separate entities. It is not uncommon to see the shares of this type of corporation trade on major stock exchanges, which allows individual investors to gain exposure to the company's profit. Investopedia Says:
For example, the Federal National Mortgage Association (Fannie Mae) is regarded as a quasi-public corporation because it operates as an independent corporation. This company operates under a congressional charter that aims to increase the availability and affordability of homeownership, but is not treated as any part of the government. Contrary to popular opinion, employees of quasi-public corporations do not work for the government. Related Terms:
Deprivatization
Exchange
Fannie Mae - Federal National Mortgage Association - FNMA
Freddie Mac - Federal Home Loan Mortgage Corp - FHLMC
Ginnie Mae - Government National Mortgage Association - GNMA
Government-Sponsored Enterprise - GSE
Public Company |