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by D3nver 3882 days ago
Essentially tracking stock is a claim on the results of the income statement (revenues & expenses) for VMWare, whereas normal common stock is a claim on the income statement as well as the balance sheet (assets & liabilities).

Another way to think about it is that ETFs are tracking stocks. You do not have claim on the underlying stocks that the EFT holds, you only have claim to the return that holding those stocks would produce.

1 comments

Is that similar to the Google stocks with class A and C?
No, voting rights are the difference between the Google (now Alphabet) share classes.