Dictionary Home »
Webster's New World Finance and Investment Dictionary » tracking stock
tracking stock
tracking stock definition - finance
A
type of common stock that represents a claim on a unit of a larger company. A
tracking stock pays dividends, and its price changes based upon the underlying
performance of the unit, but a holder of a tracking stock has equity in the
parent company, not the unit. Tracking stock is traded in addition to the
regular shares in the company. Tracking stocks became popular in the stock
market boom of the late 1990s.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
Comments
Improve this definition.
Browse dictionary definitions near tracking stock
Share on Facebook