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The dividends of tracking stock are tied to a particular division, rather than the company as...

The dividends of tracking stock are tied to a particular division, rather than the company as a whole. Tracking stock usually has no voting rights, and the financial disclosure for the division is not as regulated as for the company.

True / False

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Expert Solution

True

tracking stock is not like common stock, it is sealed in a separate security market, company performance is not connected with this tracking stock, it may go up even if the company performs not well or vise versa, during the liquidation of the company the tracking stock do not a legal authority to claim to the company, the return is based on the business unit or division and it is not mandatory to pay dividends.

jeff jeffy answered 2 years ago
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