The correct answer is: A. target stock.
A tracking stock is a type of equity security that tracks the performance of a specific business unit or asset of a company. It is a type of derivative security that is linked to the performance of a particular asset or business unit of a company. Tracking stocks are often used by companies to allow investors to invest in a specific part of the company’s business.
Target stocks are a type of tracking stock that is created when a company splits off a business unit into a separate, publicly traded company. The target stock tracks the performance of the spun-off business unit, and investors can buy and sell the stock just like any other stock.
Dividend stocks are a type of stock that pays a regular dividend to its shareholders. The dividend is a portion of the company’s profits that is paid out to shareholders on a regular basis. Dividend stocks are often considered to be more stable investments than non-dividend stocks, as they provide a regular stream of income for investors.
Firm part stock is a type of stock that represents a fractional ownership interest in a company. Firm part stocks are often used by companies to raise capital or to reward employees.
Tied stock is a type of stock that is linked to the performance of another asset or security. Tied stocks are often used by companies to hedge against risk or to provide investors with exposure to a particular asset or security.
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