Tracking stock, or targeted stock, are specialized equity offerings issued by a company that is based on the operations of a wholly owned subsidiary of a diversified firm. Therefore the tracking stock will be traded at a price related to the operations of the specific division of the company being "tracked".
Additional meaning of Tracking Stock:
Tracking stock typically has limited or no voting rights. Often, the reason for doing so is to separate a high-growth division from a larger parent company. The parent company and its shareholders remain in control of the subsidiary's or unit's operations.