Mutual company

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Mutual company

A corporation that is owned by a group of members and that distributes income in proportion to the amount of business that members do with the company.
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Mutual Company

A company structure in which the company's owners are also its clients. That is, the mutual company's profits are distributed to its participating customers each year in proportion to their individual exposures to the company. Many insurance companies are structured as mutual companies, meaning that policyholders have the right to receive portions of the company's profits, and often may elect the company's management. Savings & loan associations are also common structured as mutual companies.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

mutual company

A company owned by its customers rather than by a separate group of stockholders. Many thrifts and insurance companies (for example, Metropolitan and Prudential) are mutual companies. Compare stock company.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Mutual company.

A mutual company is a privately held company owned by its policyholders, depositors, or other customers. A share of the profits is distributed as dividends, allocated in proportion to the amount of business each customer does with the company.

Insurance companies, federal savings and loan associations, and savings banks are examples of mutual companies, although each type operates somewhat differently.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
While most Japanese life insurers are mutual organizations, many are considering becoming stock companies to better survive harsh competition amid growing industry consolidation.
They had little in common with Protestant workers because there was no intermarriage, no kin connections, nor any mutual organizations in which they could join.
While most Japanese life insurers are mutual organizations, many are considering becoming stock companies to take advantage of more flexible operations amid growing industry consolidation.

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