Stock Insurance Company

Stock Insurance Company
Stock Insurance Company

An insurance company owned by its stockholders, who share in profits through earnings distributions and stock value increases.

Insurance companies are generally classified as either mutual or stock companies. This is more of a traditional distinction, as true mutual companies are becoming rare.

The difference between the two types of companies is that mutual companies are owned by policyholders, while stockholders (who may or may not own policies) own a stock insurance company.

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