This week IBD announced that Donaldson,Lufkin was issuing stock for DLJ On-Line.It said this would be a "tracking stock"which seems to distinguish it from some other kind of stock. The term is not in my glossary;what is it and what does it do for us?
A tracking stock is one that tracks the performance of a company subsidiary without separating the legal ties. Here is an article I wrote about Dupont and a tracking stock for its life sciences division, which describes some of the benefits and drawbacks of such a structure: http://www.fool.com/EveningNews/foth/1999/foth990316.htmHope that helps,Warren
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