tracking stock

tracking stock definition - business

tracking stock

A common stock that provides holders with a financial interest in a particular segment of a company's business. Essentially, a tracking stock is a proxy for the value of the subsidiary if it were independent and publicly traded. Tracking stocks are generally issued by corporations that feel their firms are not being fully valued by investors.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.