corporate taxations square peg an analysis of possible.pdfVIP

Catholic University Law R eview Volume 43 Article 3 Issue 4 Summer 1994 1994 Corporate Tax ations Square Peg : An Analysis of Possible Solutions to the Problem of Characterizing Tracking Stock for Tax Purposes Charles A. Borek Follow this and additional works at : ttp://scholarship.law.edu/lawreview Recommended Citation C arles A. Borek, Corp orate Taxations Square Peg : An Analy sis of Possible Solutions to the Problem of Characterizing Tracking S tock for Tax Purp oses, 43 Cat . U. L. Rev. 1107 (1994). Available at : ttp://scholarship.law.edu/lawreview/vol43/iss4/3 This Article is broug t to you for free and open access by CUA L aw Scholarship Repository. It as been accepted for inclusion in Catholic University Law R eview by an authorized administrator of CUA L aw Scholarship Repository. For more information, please contact edinger@law.edu. CORPORATE TAXATIONS SQUARE PEG: AN ANALYSIS OF POSSIBLE SOLUTIONS TO THE PROBLEM OF CHARACTERIZING TRACKING STOCK FOR TAX PURPOSES CharlesA. Borek* I. INTRODUCTION Tracking stock is a class of corporate equity securities whose value is designed to track the performance of specific assets or groups of assets of a corporation.2 As such, tracking stock splits the interest in the corpora- tion vertically, unlike common and preferred stock, which traditionally divide the corporate interest horizontally.3 Tracking stock may be issued for a variety of business purposes, including a desire to maximize stock trading price or a need for a special