Question

Which one of the following is generally not a reason for issuing tracking stocks?

a. To give investors a pure play in a specific business owned by the parent

b. To create a currency for the business to acquire other firms

c. To enhance the likelihood that the business will be acquired

d. To create an incentive for management receiving the stock

e. To raise capital for the parent or for the business for which the tracking stock is created

Answer

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