Mutual Company
A private company whose ownership base is made of customers. Also referred to as a "co-operative". Investopedia Says:
Very common in the insurance industry, mutual companies have account holders who receive distributions based upon the extent of their exposure and business with the company.
Some example of mutual companies outside of the insurance business are the Federal Savings and Loan Association and the many banking trusts and community banks found in localities around Canada and America. Related Terms:
Demutualization
Life Insurance
Mutualization
Private Company
Public Company |