Unlike a spin-off or carve-out, the parent retains complete ownership of the business for which it has created a tracking stock.

Question

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A tracking stock is a special type of equity that is issued by a parent company to track the performance of a specific business unit or division. Unlike a spin-off or carve-out, the parent company retains complete ownership of the business for which it has created a tracking stock.

Unlike a Spin-Off or Carve-Out, the Parent Retains Complete Ownership