Stock Tracking

Tracking stock are specialized equity offerings issued by a company that is based on the operations of a wholly owned subsidiary of a diversified firm. Therefore the tracking stock will be traded at a price related to the operations of the specific division of the company being "tracked". Tracking stock typically has limited or no voting rights. Often, the reason for doing so is to separate a high-growth division from a larger parent company. The parent company and its shareholders remain in control of the subsidiary's or unit's operations.

Tracking stock is 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. Now a day, the trend of trading through Stock Tips is becoming famous. Tracking stocks are generally issued by corporations that feel their firms are not being fully valued by investors.

Tracking your stocks used to be a game of hunching over a chart while watching Bloomberg TV. Fortunately, online applications like Yahoo! Finance have changed all that. This page offers a guide to how to track stocks.