Windfall Shares

DEFINITION of 'Windfall Shares'

Shares given for free to insiders of a society, a firm or a company when that same society, firm or company is undergoing the process of demutualization. Windfall shares are often given to promote goodwill and to encourage the demutualization process.

BREAKING DOWN 'Windfall Shares'

Windfall shares are one of the perks that insiders of a firm or a company may receive, and it can be seen as a bonus for the hard work insiders have shown throughout the company's history. For insiders, the personal benefit of these shares is that they can now trade their ownership openly in the market - hopefully for a profit.

RELATED TERMS
  1. Demutualization

    When a mutual company owned by its users/members converts into ...
  2. Windfall Tax

    A tax levied by governments against certain industries when economic ...
  3. Insider Buying

    The purchase of shares of stock in a corporation by someone who ...
  4. Insider

    A director or senior officer of a company, as well as any person ...
  5. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  6. Insider Trading

    The buying or selling of a security by someone who has access ...
Related Articles
  1. Investing

    When Insiders Buy, Should Investors Join Them?

    Insider tracking can inform your investment strategy, but it requires research and a level head. Find out what to look for.
  2. Investing

    Can Insiders Help You Make Better Trades?

    Find out why the trading activity of owners and executives can be a valuable trade-confirmation tool.
  3. Managing Wealth

    What Investors Can Learn From Insider Trading

    Some insider trading is actually legal - and can be extremely telling for investors.
  4. Personal Finance

    Buy Stock With Insiders: How To Track Insider Buying

    Insider buying can be a sign that a company's stock prices will soon rise. Here's how to keep track of insider buying on public databases and websites.
  5. Trading

    Keeping An Eye On The Activities Of Insiders And Institutions

    These transactions reveal much about a stock. We go over what to consider and where to find it.
  6. Financial Advisor

    Tips For Managing A Cash Windfall

    Many of us fantasize about winning a big lottery jackpot. Let’s say that actually happened? What would you do with the money? How would you manage it?
  7. Financial Advisor

    Managing a Cash Windfall

    Cash windfalls are more common than you think. Here's what to do if you receive one.
  8. Trading

    The Viability Of Tracking Insiders

    Insider trading use to be profitable, but can it be today? Learn if investors should be paying attention to insiders.
  9. Markets

    Delving Into Insider Investments

    Keeping tabs on company executives can provide clues about where a stock is headed.
  10. Personal Finance

    How To Handle A Windfall

    It can be tempting to spend a windfall on toys, trips, and other things that you "deserve," but doing so will leave you in the same place you were before you received the windfall. Find out what ...
RELATED FAQS
  1. What exactly is insider trading?

    An "insider" is any person who possesses at least one of the following: 1) access to valuable non-public information about ... Read Answer >>
  2. How can I invest in a mutually owned insurance company?

    Read about the difference between mutual and stock insurance companies, including how to become a de facto investor of a ... Read Answer >>
  3. What is the difference between open-market and closed-market transactions?

    Insiders often are blessed with owning a significant portion of a company's shares. This shared ownership is often in the ... Read Answer >>
  4. What's the difference between insider trading and insider information?

    Learn about insider information and insider trading and the differences between the two; both involve nonpublic information ... Read Answer >>
  5. Can you accidentally engage in insider trading?

    Learn why it's possible to commit insider trading by accident, and why insider trading laws create logical inconsistencies ... Read Answer >>
  6. How often should I measure my company's key performance metrics (KPIs)?

    Learn the definition of illegal insider trading while reviewing the people who can be involved and the regulations and consequences ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center