Windfall Shares

AAA

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. Shares

    A unit of ownership interest in a corporation or financial asset. ...
  3. Friends and Family Shares

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

    A director or senior officer of a company, as well as any person ...
  5. Mutual Fund

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

    A private company whose ownership base is made of its clients ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. How much money do real estate agents ...
    Professionals

    How much money do real estate agents ...

  3. Does my employer's matching contribution ...
    Retirement

    Does my employer's matching contribution ...

  4. Are there special benefits for U.S. ...
    Retirement

    Are there special benefits for U.S. ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center