Question
Demutualization means segregation
ofSolution
Demutualization refers to the segregation of ownership rights and management rights from trading rights . This process transforms a mutual organization, typically a member-owned entity like a stock exchange, into a company that is owned by shareholders. In a mutual organization, the members are both the owners and the users of the services (and thus have trading rights). In a demutualized entity:Â
- Ownership rights  and management rights  are held by the shareholders and a board of directors.
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