Quasi-public corporation

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Quasi-public corporation

A corporation that is operated privately, but is supported by the government in its operations and that often traded publicly.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Quasi-Public Corporation

A publicly traded company partially owned or at least guaranteed by a government for some purpose thought to benefit the community. For example, a government may create a quasi-public corporation that sells mortgages to encourage homeownership. Quasi-public corporations are considered low-risk investments because of the express or implied guarantee that the government would not allow the company to go bankrupt. However, quasi-public corporations are required to place their mission above providing a profit to stockholders. See also: GSE.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

quasi-public corporation

A privately operated firm having legislatively mandated public responsibilities. A quasi-public corporation may have publicly traded shares of stock. Fannie Mae is a quasi-public corporation established to make a secondary market in mortgages. The firm is privately owned but publicly traded and its shares of common stock are listed on the New York Stock Exchange.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Quasi-public corporation.

In the United States, quasi-public corporations have links to the federal government although they are technically in the private sector.

This means that their managers and executives work for the corporation, not the government. And, in many cases, you can buy stock in a quasi-public corporation, expecting to share in its profits.

Many quasi-public corporations were originally federal agencies that have been privatized. Among the best known are Fannie Mae, Freddie Mac, and Sallie Mae. They securitize consumer loans and sell them in the secondary market.

The US Postal Service is also a quasi-public corporation, as is the Tennessee Valley Authority (TVA).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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Fannie Mae and Freddie Mac, two quasi-public corporations that invest in about half the mortgages in the U.S., also were rescued.
Mitsubishi Tokyo Financial Group and UFJ Holdings also rose on a business daily report that major banks are moving to dispose of loans that were originally extended to quasi-public corporations but turned nonperforming by selling them to the Resolution and Collection Corp.
* In the case of Egypt, the capital-to-assets ratio of the leading banks (the National Bank of Egypt, and Banque Mist) is less than three per cent, because of the banks' large holdings in debt-ridden, poorly run, public or quasi-public corporations.