| Tracking Stocks |
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Tracking stocks are usually issued by a parent company to create a financial vehicle to track the performance of a particular division or subsidiary.
When a parent company issues a tracking stock, all revenues and expenses
of the division are separated from the parent company's financial
statements and attributed to the tracking stock. Often this is done
to separate a high growth division with large losses from the financial
statements of the parent company. Furthermore the parent company(and
its shareholders) still control operations. |
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Sprint
has successfully done this with its wireless area. |
Tracking
Stocks Defined
- This is a brief article that goes into more depth about tracking
stocks.
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Dictionary
