Windfall Shares
Categories: Tax, Ethics/Morals
See: Windfall Profits.
Let’s set the stage here: there’s a mutual company, which is a private company that’s owned by its members. The owners are the clients—all very democratic sounding, eh? A credit union is a good example. Sometimes though, mutual companies decide to change the company structure—a process called “demutualization”—to one where the company is owned by shareholders. Demutualization can kind of be like a bittersweet breakup, giving some stuff up to get other stuff.
Windfall shares are given to these mutual company owner/clients as a parting goodie-bag, so to speak. They’re freebies, a gesture of goodwill, as a mutual company goes through the long and awkward process of demutualization. It’s like when a rich dad who’s never home buys his kid some ridiculously expensive toy (kind of).
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Finance: What is a windfall?2 Views
Finance Allah Shmoop What is Ah windfall Waterfall snowfall pratfall
that none of those are what we're talking about here
So what's a windfall Well it's an incredible unexpected sudden
fortune usually of the dolla dolla bill variety like you're
at the blackjack table and you think you're only about
to win fifteen bucks for that hand But it turns
out you just won the casinos one million hand and
suddenly you're surrounded by streamers and confetti and heavily made
up women in rhinestone studded dresses And well you're being
handed a massive check for one million dollars Yeah you
should probably not double down or you bought a Powerball
ticket on a whim You usually never waste your money
on these things But you had a single that was
just burning a hole in your pocket And you were
bored while you were waiting in line at the Quickie
Mart there So you took a shot and you scored
and now you're set for life Huge windfall Yeah Final
example You were employee number eight at Google and you
decide to finally cash in your stock options Less of
a windfall and more of a sky fall there but
well it might be time to do a Google search
for how much does it cost to buy your own 00:01:17.84 --> [endTime] island Yeah that's a good one