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Definition of 'Demutualization'
When a mutual company owned by its users/members converts into a company owned by shareholders. In effect, the users/members exchange their rights of use for shares in the demutualized company.
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Investopedia explains 'Demutualization'
A mutual company (not to be confused with a mutual fund) is a company created to provide specific services at the lowest possible price to benefit its users/members. In demutualization, ownership of the mutual company is separated from the exclusive right to use the services provided by the company.
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Search results for 'Demutualization'
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http://www.investopedia.com/articles/stocks/08/history-of-toronto-stock-exchange.asp
... In April 2000, the demutualization process that was started in 1999 was completed, enabling the TSX to become a for-profit company. ...
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