Tracking stock (See Chapter 30 of the Vernimmen) Performance of a tracking stock is indexed to the financial results of a subsidiary or division. Technically a share of the parent company, a tracking stock confers no voting right on the decisions of the subsidiary that it represents. If the business is sold, however, the holder of the tracking stock has the right to receive a portion of the capital gain. Tracking stocks enable a company to retain full control of a subsidiary while allowing the market to establish a value for it and providing a ready currency for acquisitions. Tracking stock (See Chapter 30 of the Vernimmen) Performance of a tracking stock is indexed to the financial results of a subsidiary or division. Technically a share of the parent company, a tracking stock confers no voting right on the decisions of the subsidiary that it represents. If the business is sold, however, the holder of the tracking stock has the right to receive a portion of the capital gain. Tracking stocks enable a company to retain full control of a subsidiary while allowing the market to establish a value for it and providing a ready currency for acquisitions. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Tracking stock" :

TMT TSR Take and pay contract Take or pay contract Takeover Takeover bid Tangible fixed asset Tapping the reserves Tax loss carrybacks Tax loss carryforwards Tax shield Technical analysis Technical dilution Temporal method Temporary differences Tender offer Term sheet Terminal value The bottom-up approach is also called the stock-picking approach.

Theory of markets in equilibrium Theta Time deposit Time diversification Time value Time value of money Timing differences Timing problem Tobin’s Q Toogle notes Top-down approach Total breakeven Total debt service Total return swap Total shareholder return, TSR Tracking stock Trade buyer Trade payables Trade receivables

Trade-off model Trading profit Trailing ratio Transaction multiples Transaction multiples method Transfer Transfer of assets Translation Translation risk Treasury Treasury method Treasury shares Treeing Trend analysis Trust preference shares Turnover – assets Turnover – liabilities