Windfall Shares

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Windfall Shares

Shares given without charge to the owners of a mutually-owned company when that company is in the process of demutualizing. Because the owners will no longer be the owners when the company demutualizes, windfall shares are designed to compensate them for their previous ownership. This is intended to encourage goodwill. It also gives the former owners a continued stake in the company.
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Summary: Staff at high street retailer Sports Direct are celebrating a windfall share average payout of more than Au40,000.
Huw Jenkins, who will be in charge of the service, said it was aimed at the complete range from the one-time customer with a windfall share certificate to the market watching regular investor.
The likely windfall share payout is estimated to be between pounds 647 and pounds 815 for each member.
The service has something to offer everyone, from the one-time dealer with a windfall share certificate to the market-watching regular dealer.
Standard Life has said half its eligible policyholders stand to reap windfall share payments valued at more than pounds 1,000 pounds from the float.
For if couples have joint life policies the insurer is giving the windfall share outs, averaging pounds 1,000, to the first named policyholder only.
4 million eligible policyholders stood to reap windfall share payments worth more than pounds 1,000 from the flotation, while the remainder would get pounds 500-pounds 1,000.
4 million eligible policyholders should get a windfall share payment worth more than pounds 1,000 and the rest pounds 500 to pounds 1,000.
Investment advisers Chase de Vere's booklet, What To Do With Your Windfall Shares, includes a handy sheet with details of PEP providers' charges and conditions for windfall share transfers.
THE Share Centre are offering a free price limit service for windfall share certificate holders to state a minimum price at which they want to sell their shares.
The 42-day deadline will apply to all the other windfall share issues later this year, including the massive Woolwich and Halifax hand-outs.
The 4% rise gives someone with an average 673 windfall shares pounds 82.