Demutualization occurs by giving the members shares or equity in the demutualized organization in exchange for their seats in the mutual organization.

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Demutualization involves converting a mutual organization, such as a mutual insurance company or mutual exchange, into a publicly traded company or other type of corporation. As part of this process, the members of the mutual organization typically receive shares or equity in the demutualized company in exchange for their membership interests in the mutual organization.

Demutualization Occurs by Giving the Members Shares or Equity in the Demutualized