tracking stocktracking stock
tracking stock - Investment & Finance Definition
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.