Compare and contrast mutual and stockholder-owned savings, Financial Management

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

Some loan and savings associations are owned by stockholders, just as commercial banks and other corporations are owned by their stockholders.  Other S&Ls called mutuals are owned by their depositors.  When 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 special reserve account from which dividends are paid from time to time to the owner/depositors.

 

 

 


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