Tracking of stick (division shares) are shares, which refer only to a certain division of an enterprise. The owners of these usually quoted shares have the same rights as the owners of other shares, however these refer only to this kind by shares successfully in the USA already longer are acted, are still to a large extent unknown them in Germany.

Requirements

In order to give to the shareholders the correct profit-sharing, a separate accounting is necessary. The management remains however the same; it is not separated.

Advantages and motives

For example if the shares of the total enterprise are underestimated, then can be emitted tracking stick of a successful daughter enterprise, all to akquirieren more own capital funds.

Problems

Control of the separate divisions becomes very difficult. Incentives would consist for transversesubsidizing unprofitable divisions of a successful range. Since this kind of share is common in Germany still little, places this also new challenges at chartered accoutants.

Articles in category "Tracking stick"

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