Examlex

Solved

When a Parent Creates a Tracking Stock for a Subsidiary

question 65

True/False

When a parent creates a tracking stock for a subsidiary, it is giving up all control of that subsidiary.


Definitions:

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.

Related Questions