Definition of Windfall Shares

Windfall shares are the shares given for free to insiders of a society, a firm or a company when that same society, firm or company is undergoing the process of “demutualization”.

Explanation of Windfall Shares

Demutualization is the process by which a customer-owned mutual organization (mutual) or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization.

Windfall shares are often given to promote goodwill and to encourage the demutualization process.