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. Stock

    A type of security that signifies ownership in a corporation ...
  3. Shares

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

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

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

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

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center