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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

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Tracking stock

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: What is "tracking" stock? Please illustrate your answer.

A: I have no personal experience with tracking stock and therefore nothing to add to the academic descriptions and examples commonly available. A short description would be a stock of a subsidiary or division of a larger company. Tracking stock can be a real issued and traded stock or just an illustrative measurement like a "phantom stock". This seems unlikely to be a "hot topic" in consumer finance unless you happen to work for a conglomerate company that uses a tracking stock of your division as the basis of your performance compensation. In that case, you might be concerned about the details of stock options or similar employer-provided benefits. Otherwise, there is little difference to an individual between a tracking stock and a regular stock that happens to be a spin-off of a larger company.

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