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Track share
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Specific nature of share of a company assigned to a specific category of assets, to a Subsidiary, or even to an activity in the company.
The track share Holder's rights (dividends, etc.) are indexed on the performances of the considered assets, as well as on the corresponding appreciations in the event of divestment. The tracking shares thus make it possible to financially isolate the results provided by a class of assets.
The tracked assets still appear in the Balance Sheet of the issuer, which comes down to saying that the holders of such shares have only a general right on the assets of the company, as the ordinary shareholders. The definition of the perimeter of the tracked assets implies a specific book-keeping, but also delicate comparative economic analyses with some risks of conflict between the various activities.
The firms may find it beneficial sometimes to issue such shares to facilitate and channel the creation of value in the event of reconciliations. Tracking shares are mostly found in the United States.
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Privatebanking.com
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