The study deals with theoretical questions of the Hungarian privatization law. It clarifies the differences between the economic and legal concept of privatization, the various interpretations of privatization. The Hungarian privatization was the earliest and at the same time-after the German-the quickest completed privatization in the former socialist countries. It reviews the so-called spontaneous privatization between 1988–1990, and the privatization legislature of 1992 and 1995 as well. As a conclusion the study deals with the evaluation of the privatization law, and with the consequences of privatization with regards to social politics.