How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 478.46

-1.7%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: taxman who wrote (26789)	7/20/1999 12:50:00 AM
From: Gerald Walls	Read Replies (1) of 74651

"tracking stock?" i don't know the answer but will take a guess. first microsoft will contribute its internet related assets to a newly formed wholly owned subsidiary. No, that would be real stock and not a tracking stock. A tracking stock is purely an accounting gimmick. Certain assets, like Hughes or EDS, are accounted for as if they were a separate company and a stock is issued that supposedly reflects the performance of those assets, like GM Class H and GM Class E stock respectively. However, there is no separate control or board of directors, no legal separation of income/expenses, no separation of liability, and the owners of the tracking stock have no real claim to the tracked assets. But, hell, as long as no one cares and they buy it anyway... In the future, if MSFT were to decide to actually spin off the Internet assets, the tracking stock could be turned into a real company I guess.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next