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If a parent company that has tracking stock stock becomes worthless, do the shareholders of the tracking stock have claims on assets (e.g. subsidiaries) that the tracking stock tracks? Or is tracking stock just an "illusion" where a collapse of the parent automatically means the collapse of the tracking stock even if the assets that the tracking stocks track are still solvent and profitable?

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If tracking stock really is just a no-vote minority exposure to a revenue stream, than the parent company going bankrupt already factors in that revenue stream, and people with actual claims of ownership will already gut the assets for whatever scraps they can find, before anyone with tracking stock gets the dust remaining.

If the tracking stock is really an IPO or direct listing of a subsidiary, and the people own a lot of it, then it can be separate. But then it likely wouldn't be called tracking stock.

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