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

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