Week 4 Stock 3 - In looking at a few other articles I could not find a purpose to why they chose to use tracking stocks however they seem to be

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I found an article that compares two companies’ stock approaches. The result is that assumption that people may prefer one type of stock and therefore invest in a company simply because it is easier to understand that another’s stock options. VMware basically uses a tracking stock from EMC's virtualization division. The company called VMware a roller coaster ride more suited for high rolling investors. For those who prefer a little safety in their investing, they are better off with EMC. VMware stocks are simply not easy to evaluate.
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Unformatted text preview: In looking at a few other articles, I could not find a purpose to why they chose to use tracking stocks; however they seem to be very successful. Despite hesitation in faith in their potential they are proving to be a strong company even during our tough economic situation. Source: http://www.fool.com/investing/general/2010/01/27/emc-and-vmware-a-tale-of-two-stock-charts.aspx http://www.internetnews.com/bus-news/article.php/3860561/VMware+Soars+Past+Q4+Estimates.htm...
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This note was uploaded on 03/26/2012 for the course F1515 F1515 taught by Professor Stan during the Spring '10 term at Keller Graduate School of Management.

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