Examveda
Examveda

Type of stock in which dividends are tied to any particular part of a firm is classified as

A. dividend stock

B. firm part stock

C. tied stock

D. tracking stock

Answer: Option D

Solution(By Examveda Team)

Type of stock in which dividends are tied to any particular part of a firm is classified as tracking stock. A tracking stock is an equity issued by a parent company that tracks the financial performance of a particular division. Tracking stocks trade in the open market separately from the parent company's stock. Gains or losses in the tracking stock price are based only on the division's performance

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