Shares issued by a company which pay a dividend determined by the performance of a specific portion of the whole company. Tracking stock differs from a spinoff in that it does not represent or require any change in business structure. Holders of tracking stock are considered to hold equity in the parent company and not the specific entity represented by the tracking stock. Tracking stock is often set up by companies that have several diverse divisions, both so that investors can take a share in a division of their interest, and so that the performance of these divisions can be tracked in terms of shareholder interest. A company will sometimes issue a tracking stock when it has a very successful division that it feels is underappreciated by the market and not fully reflected in the company's stock price.
Related information about tracking stock:
- Tracking stock - Wikipedia, the free encyclopedia
Tracking stock or targeted stock are specialized equity offerings issued by a company that is based on the operations of a wholly owned subsidiary of a ...
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1. Common stock issued by a parent company that tracks the performance of a particular division without having claim on the assets of the division or the parent ...
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Sep 3, 2004 ... 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 ...
- Tracking Stock - NYU Stern School of Business - New York University
Tracking stock does not represent or require any change in business structure. Holders of tracking stock are considered to hold equity in the parent company ...
- WHY ISSUE TRACKING STOCK? INSIGHTS ... - Boston College
Feb 4, 1999 ... he issuance of tracking stock is a relatively new form of corporate restructuring in ... The number of tracking stock issues has increased steadily ...
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A tracking stock is a special type of stock used to track an operating division or segment. Find out about the pros and cons of owning tracking stock in your ...
- Tracking stock - Moneyterms home
Tracking stock. Tracking stocks are securities that are designed to have a value that reflects the value of a division of a company. Issuing a tracker is an ...
- Tracking Stock Definition & Example | InvestingAnswers
We explain the definition of Tracking Stock, how it works and why it's an important concept in business, finance and investing.