Can someone please explain to me about demutualization re: finances...stocks and bonds?

Answer 1

That is called an account withdrawal. It is when you take your money out of the common pot, which is called a mutual fund. Another possiblity is to dissolve the fund, wherein if you have, say, 10.35 shares with a book value of $23.45, then the fund administrator's people do the math and send you $242.70 (or maybe 71 cents if they are generous and round up).

A mutual fund is a financial vehicle wherein many people pool their money to invest in something through the work of the fund administration people. That is inherent in the word "mutual". If you 'demutualize' then either you stop being part of that fund by withdrawing your money, or the fund closes and sends everyone their share.