Mutual Company
A private company whose ownership base is made of customers. Also referred to as a "co-operative".
Investopedia Commentary
Very common in the insurance industry, mutual companies have account holders who receive distributions based upon the extent of their exposure and business with the company.
Some example of mutual companies outside of the insurance business are the Federal Savings and Loan Association and the many banking trusts and community banks found in localities around Canada and America.
Related Links
See also: Demutualization, Life Insurance, Private Company, Public Company
mutual company