A tracking stock has value that tracks specific assets of a publicly traded company. In a tracking stock structure, the operations or specific assets of a company are separated into tracking stocks which each trade independent. However, the corporation still exists as a single legal entity, meaning that credit holders have potential claim across the tracking stocks.
The invention of tracking stocks
Tracking stocks entered the investment fray in 1984, when General Motors issued a tracking stock to fund its acquisition of Electronic Data Systems. After a brief stint of popularity during that era, the used of tracking stock faded, until be reintroduced by John Malone.