Windfall shares

Margaret Thatcher may have dreamed of a nation of small shareholders. Since then that dream has come true in a way that she never foresaw. Millions of people have become shareholders as a number of building societies and insurance companies have since converted to public limited companies.

Alliance & Leicester, Halifax, Woolwich, Bradford & Bingley and Northern Rock - among others - all handed out free shares to their customers in the biggest boost to share ownership ever seen.

New shareholders have several decisions to make when being offered windfall shares. See: your options.

Several building societies have introduced membership restrictions that prevent carpetbaggers benefiting from windfall shares if they convert to public limited companies. However, should a building society subsequently seek to list on the stock market it's a fair bet that any restrictions won't count for much. After all, it will need your vote before it can list.

See Also: Online share dealing service Stockmarket Centre

Last Updated: June 2007 © Moneyextra.com

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.