Multiple choice

The process of segregation of ownership and trading rights of the members in a stock exchange is called

  1. Mutualization

  2. Demutualization

  3. Rematerialization

  4. Dematerialization

  5. Reformation

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Demutualisation is the process through which any member-owned organisation becomes a shareholder-owned company. A stock exchange can demutualise in many ways. One common way is to split the membership into two parts — trading rights and ownership.