Compare and contrast mutual and stockholder, Financial Management

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Compare and contrast mutual and stockholder-owned savings and loan associations.

A few savings and loan associations are owned by stockholders, just like commercial banks and other corporations are owned through their stockholders.  Other S&Ls, known as mutuals, are owned by their depositors.  While a person deposits money in an account at a mutual S&L, that person becomes a part owner of the firm.  The mutual S&L's profits if any are put into a unique reserve account from which dividends are paid from time to time to the owner or depositors.


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