Demutualization Guide, Meaning , Facts, Information and Description
The term demutualization (or demutualisation) describes the process by which mutual organizations or companies (mutuals) convert themselves to for-profit (or profit-making) public companies which distribute profits to their shareholders in the form of dividends.Demutualization usually involves the sale of a mutual, by its members, to a non-mutual company or to the stock market.
As a result of demutualization, members of a mutual usually receive a windfall payout. This payout usually takes the form of shares in the successor company, a cash payment, or a mixture of both.
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