Windfall Shares

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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.

INVESTOPEDIA EXPLAINS '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. Shareholder

    Any person, company or other institution that owns at least one ...
  2. Insider

    A director or senior officer of a company, as well as any person ...
  3. Friends and Family Shares

    A company's stock that is offered to preferred individuals, prior ...
  4. Mutual Company

    A private company whose ownership base is made of its clients ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Demutualization

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