Historically, stock exchanges were mutual organizations owned by their members (brokers/traders) who also controlled and managed the exchange. Demutualization is the process of transforming this mutual structure into a corporate structure where ownership is held by shareholders (who may or may not be traders) and trading rights are distinct from ownership. This separation of ownership (by shareholders) from trading rights and often management (which becomes professionalized, accountable to the board representing shareholders) is a key outcome. Option A captures this separation. Option B is incorrect as it converts the exchange into a for- profit entity. Options C and D are irrelevant.