Examlex
When a parent creates a tracking stock for a subsidiary, it is giving up all control of that subsidiary.
Call Option
The right to buy an asset at a specified exercise price on or before a specified expiration date.
Nonsystematic Variance
The portion of an investment's variance that is attributable to factors specific to its issuer and can be eliminated through diversification.
Market Index
A statistical measure reflecting the composite value of a selection of stocks, representing a specific market or a portion of it, used as a benchmark.
Active Portfolio
An investment portfolio that is managed with the intent to outperform the market through selecting and trading securities.
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