Demutualization in the context of stock markets means ........

Indian Economic System(PCS) Financial System

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Demutualization in the context of stock markets means

This questions was previously asked in

PCS Previous year General Studies paper (2013)

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Separation of ownership from the management of the stock exchange

Conversion of a stock exchange into a non-profit organization

Unlisting of a blue chip company from the stock exchange

Awarding trading rights by a company to a merchant bank

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Explanation:

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. Demutualization benefits a company by allowing it to raise money by trading shares, which potentially leads to faster growth and a stronger company. Policyholders also benefit by receiving compensation for their ownership stake