I have been looking at some tracking stocks lately and am a little confused conceptually about how they truly function in theory and in practice.
It seems like the general idea is that a tracking stock isolates a certain part of the business, and investors can pick and choose which parts of the overall business they want exposure to.
This is where I am lost. How can you not be exposed to the other parts of the business if they are not truly independent of each other and still under one conglomerate?
Am I looking at this the wrong way or missing something?
I appreciate any information and insight that can be provided. TIA!
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