Tracking stock
MarketsDefinition
Equity issued by a parent company that tracks the performance of a specific business segment but doesn't represent legal ownership of that segment. Largely fell out of favor in the 2010s — better to fully spin off.
Liberty Media still uses tracking stocks (LSXMK, BATRA, FWONK). Mostly a tax-efficiency tool around capital gains.
Liberty Media still uses tracking stocks (LSXMK, BATRA, FWONK). Mostly a tax-efficiency tool around capital gains.