I recently came across this term and found it applicable in the following two contexts:
• Stock exchanges getting demutualized – moving from not-for-profit organizations run by their members (owners) to for-profit Corporations. In the not-for-profit structure, the firm must own a seat to become a member. The second form of “for-profit” private company, in which the exchange is owned by shareholders. Firms participate as “Participating organizations” or “Approved Participants.”
• Insurance Companies get demutualized when they would convert from policy-holders to shareholders – “policy holders become shareholders in an insurance company.”
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