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Mutualization

Categories: Mutual Funds

Think: cats. Mew. Chew. Al. Ization. Or something like that. Lots of cats, all sharing in the fish that just flopped up on the deck, as they tear apart its gills, eyeballs, fins, and guts. They have mutualized the eating of the fish.

When things are mutualized, they are put together, collectivized, team-ified, cross-collateralized. That is, bonus money due a factory division is a mutualized thing; everyone shares mutually in the winnings.

Find other enlightening terms in Shmoop Finance Genius Bar(f)