Tracking stocks are often created to give investors a pure play investment opportunity in one of the parent's subsidiaries.

Question

Quizplus · Accepted Answer

This statement is true. Tracking stocks are created to isolate the performance of a specific subsidiary or business unit within a larger corporation, providing investors with a way to invest in that particular area of the company. This allows investors to make a more focused investment and potentially benefit from the growth or profitability of that subsidiary without being impacted by the performance of the larger parent company.

Tracking Stocks Are Often Created to Give Investors a Pure