In case if a person wants to make investment in Alphabet Inc., he has to purchase GOOG or GOOGL shares. People may get confused regarding which of these shares they should buy. Google has announced a split in 2012 and this split came into action in 2014. The shares were divided into GOOG and GOOGL (NASDAQ GOOGL). Previously, shareholders did not like this split as they thought that the founders of the company want to control the company. The GOOGL stock allows the buyers to give their vote but this facility is not available with the people who purchased GOOG stock.
Influence on other companies
Google earned a lot of revenue due to this split, the other companies also to split their shares. Companies like Under Armour and Snap Inc. issued non-voting shares to their shareholders. Because of this, S&P 500 index made change in the rules of initiating shares. It said that if any company would apply multiple share structure, its name will be struck off from the index. In spite of this, Google introduced both these shares. Let us know the difference between them.
Difference between GOOG and GOOGL
The split in a share leads to increase in the number of shares and lowering its cost. Google has split its shares into GOOG and GOOGL and here we will differentiate them.
- GOOG belongs to the shares of class C while GOOGL belongs to the shares of class A.
- People who have shares of class C has no right to vote while class A shareholders can give their vote when needed. Each share has one vote.
- If anyone has purchased the share before the split, then he will have the right to vote, as he will get one share of GOOGL. He will also get one share of GOOG which does not include right of voting.
- Shares of class B are also available but they are not for the public. These shares are with the owners and directors of the company. Each of these directors has the right of ten votes for each share.
- There is a rule that if the company sells the share of class C, it also has to convert one share of class B to a share of class A.
- Google has also made an announcement that if there is a big difference between the shares of class A and class C, it will give compensation to the holders of class C shares.
- The class A and class C shares can be found on Nasdaq OMX indices.
- The listing of class A shares has been stopped on NASDAQ OMX index and now only class C shares are available on the index. In spite of this, class A shares will be traded.
You can check more information from https://www.webull.com/income-statement/nasdaq-googl. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.