Full form of PSU
What is the Full Form of PSU?
Searching for the PSU full form? It stands for Public Sector Undertaking.
Think of it as a government-owned company. The Central or State government owns more than 51% of the shares. That means they hold majority control.
Why does the government run these? Mainly to provide essential services such as banking, energy, railways, or defense, where private players might prioritize profits over public welfare.
Big examples? SBI (State Bank of India), ONGC, and NTPC.
Why Do Investors Care About PSUs?
PSUs used to be famous just for secure government jobs. Now? Stock market investors are eyeing them heavily.
Many mature PSUs pay out solid, consistent dividend yields. But there is a catch. Their stock prices don't always follow standard market logic. They swing heavily based on government policies, election results, and bureaucratic delays.
Now that you know the full form of PSU and what these companies do, it is important to assess whether they actually fit your investment strategy.
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