Tracking stock

Okay kiddo, so let's say you and your friend have a lemonade stand. You both put in the same amount of money to start it, but your friend is the one who came up with the idea and recipes for the lemonade.

Now, as the business grows, your friend thinks that other people might want to invest in the lemonade stand so that it can grow even bigger. But your friend doesn't want to give up control of the lemonade stand to these investors.

So, your friend comes up with the idea of creating something called a tracking stock. This is like a special kind of stock that only tracks the profits and losses of the lemonade stand, without giving the investors any control over how the business is run.

Basically, your friend is saying to the investors, "You can buy this tracking stock and share in the profits and losses of the lemonade stand, but I'm still the one in charge."

Does that make sense, kiddo?