noun
- the process of converting a mutual organization (such as an insurance company or building society) into a joint-stock company with shareholders
Usage: finance; business
Examples
- The insurance company announced its demutualization to raise capital from public investors.
- Demutualization allowed the building society to compete more aggressively in the financial market.
- Members of the mutual fund voted in favor of the demutualization proposal.
- The demutualization process involved converting member ownership into shareholder equity.
- Several major financial institutions underwent demutualization during the 1990s and 2000s.