demutualization
Membership structure dissolution
Demutualization is the conversion of a member-owned organization into a shareholder-owned corporation.
Insurance companies and stock exchanges that were once owned by their policyholders or members become publicly traded companies through this process: The insurance company's demutualization allowed it to raise capital by selling shares.
Members typically receive stock or cash in exchange for their ownership stakes.
Owners of company stock
- IPOFirst public stock offering
- stockGoods kept for sale
- equityImpartial treatment or ownership value
- listingRecorded item in catalog
exchange · corporation · securities · charter · bylaws · governance · board · incorporated
Those owning insurance contracts
- membersPeople in an organization
- stakeholdersThose with investment in outcome
- beneficiariesThose who receive advantages
- entitlementAssumed right to benefits
distribution · windfall · compensation · allocation · membership · surplus · participating · eligible
Act of changing states
- restructuringRearranging an existing framework
- transformationThorough change in form
- reorganizationChanging how something's arranged
- changeoverComplete shift between systems
reform · modernization · shift · privatization · reincorporation · vote · implementation · timeline
Exchanging for value
- underwritingRisk evaluation and acceptance
- brokerageTransaction-facilitating service
- dividendsProfits paid to shareholders
- regulationOfficial rules governing conduct
compliance · valuation · liquidity · analyst · portfolio · actuarial
Institution holding deposits
- credit-unionMember-owned financial cooperative
- thriftCareful use of resources
- cooperativeJointly operated enterprise
- MetLifeInsurance and financial services provider
shareholders
Owners of company stock
listing · exchange · corporation · securities · charter · bylaws · governance · board · incorporated · flotation
policyholders
Those owning insurance contracts
- membersPeople in an organization
- stakeholdersThose with investment in outcome
- beneficiariesThose who receive advantages
entitlement · distribution · windfall · compensation · allocation · membership · surplus · participating · eligible · claimants
conversion
Act of changing states
- restructuringRearranging an existing framework
- transformationThorough change in form
- reorganizationChanging how something's arranged
changeover · reform · modernization · shift · privatization · reincorporation · vote · implementation · timeline
trading
Exchanging for value
- underwritingRisk evaluation and acceptance
- brokerageTransaction-facilitating service
- dividendsProfits paid to shareholders
regulation · compliance · valuation · liquidity · analyst · portfolio · actuarial
savings-bank
Institution holding deposits
- credit-unionMember-owned financial cooperative
- thriftCareful use of resources
- cooperativeJointly operated enterprise
demutualizationnationalization
Government acquisition of industry