Mutualization

Mutualization
The process of changing a firm's business structure so the owners of the company are eligible to receive cash distributions from the company in direct proportion to the amount of revenue the company earns from each member. This form of business structure is also known as a cooperative in some jurisdictions.

The mutual business structure can be very beneficial to a member, as each member will receive a dividend for doing business with the company, but this distribution may be a tax-free distribution depending on the laws of the jurisdiction in which the member lives. An examples of a mutualized company is a grocery chain in which each shopper can become a member and receive money each year for shopping at that grocery chain.


Investment dictionary. . 2012.

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  • Mutualization — or mutualisation is the process by which a joint stock company changes legal form to a mutual organization or a cooperative. Demutualization is the reverse process. Categories: Business organization stubsMutual organizationsCooperativesCorporate… …   Wikipedia

  • mutualization — noun see mutualize …   New Collegiate Dictionary

  • mutualization — See mutualize. * * * …   Universalium

  • mutualization — n. conversion to being mutual, act of becoming interdependent; incorporation of a business or company …   English contemporary dictionary

  • mutualization — mu·tu·al·ization …   English syllables

  • mutualization — ˌmyüch(ə)wələ̇ˈzāshən, chəl , ˌlīˈz noun ( s) : the act or action of making or becoming mutual * * * mutualizāˈtion or mutualisāˈtion noun • • • Main Entry: ↑mutual …   Useful english dictionary

  • Mutualization Of Risk — Dividing up the costs associated with risks and financial losses among several investors, businesses, organizations or people. Mutualizing risk lowers the overall potential for significant financial loss to any one entity. Historically, one of… …   Investment dictionary

  • mutualize — mutualization, n. /myooh chooh euh luyz /, v., mutualized, mutualizing. v.t. 1. to make mutual. 2. to incorporate as a mutual company. v.i. 3. to become mutual. Also, esp. Brit., mutualise. [1805 15; MUTUAL + IZE] * * * …   Universalium

  • Demutualization — is the process by which a customer owned mutual organization (mutual) or co operative changes legal form to a joint stock company.[1] It is sometimes called stocking or privatization. As part of the demutualization process, members of a mutual… …   Wikipedia

  • mutualize — transitive verb ( ized; izing) Date: 1812 to make mutual • mutualization noun …   New Collegiate Dictionary

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