Introduction
Google, the world’s most popular search engine, has two different stock symbols – GOOG and GOOGL. Many people are confused about what these symbols mean and what the difference between them is. In this article, we will explain the difference between GOOG and GOOGL.
What is GOOG?
GOOG refers to the Class C shares of Google. These shares are non-voting shares, which means the investors who hold these shares do not have any voting rights in the company’s decision-making process. GOOG was introduced in 2014, when Google decided to split its stock into two different classes – Class A and Class C.
What is GOOGL?
GOOGL refers to the Class A shares of Google. These shares are voting shares, which means the investors who hold these shares have the right to vote on important company decisions, such as the election of board members and the approval of mergers and acquisitions. GOOGL is the original stock symbol of Google, and it has been in use since the company went public in 2004.
Why did Google create two different classes of shares?
Google created two different classes of shares to maintain control of the company while still allowing outside investors to buy shares. The founders of Google, Larry Page and Sergey Brin, wanted to retain control of the company’s decision-making process, even after they sold some of their shares to the public. By creating non-voting shares (GOOG), they were able to raise money from investors without giving up control of the company.
What are the differences in price between GOOG and GOOGL?
The price of GOOG and GOOGL shares is generally the same, with minor variations depending on market conditions. However, because GOOGL shares have voting rights, they are generally more valuable than GOOG shares. This means that if you want to have a say in Google’s decision-making process, you will need to buy GOOGL shares.
Which one should you buy?
Whether you should buy GOOG or GOOGL shares depends on your investment goals. If you are looking to invest in Google as a long-term investment and want to have a say in the company’s decision-making process, you should consider buying GOOGL shares. However, if you are simply looking to invest in Google for its potential growth and do not care about voting rights, GOOG shares may be a better option for you.
Conclusion
In conclusion, the primary difference between GOOG and GOOGL is that GOOG shares are non-voting shares, while GOOGL shares are voting shares. The decision to buy one or the other depends on your investment goals and whether you want to have a say in Google’s decision-making process. Regardless of which one you choose, investing in Google can be a smart long-term investment strategy.