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Tracking Stock

Category of common stock that pays a dividend based on the operating performance of a particular corporate segment. Sometimes informally referred to as "designer stock," tracking stock exists alongside the issuer's regular common shares, but with limited or no voting power and without representation of a legal claim on assets of the corporation. When a letter identifies the stock, such as with General Motor's "H" Shares, the stock is also referred to as an "alphabet stock", but differs from classified stock.