Explain briefly 'Tracking stock'.
CS Executive · Capital Markets & Securities Laws · PYQS · December 2016
Explain briefly 'Tracking stock'.
Answer & Explanation:
A Tracking stock is a type of common stock that "tracks" or depends on the financial performance of a specific business unit or operating division of a company, rather than the operations of the company as a whole. Tracking stocks are generally issued by a parent company in order to create a financial vehicle that tracks the performance of a particular division or subsidiary.
Topics: Equity Instruments