Introduction
Are you confused about the different types of Google stocks available in the market? Two of the most popular classes are Class A and Class C. In this article, we’ll explore the differences between these two classes and how they impact your investment decisions.
What are Class A and Class C Shares?
Google Class A shares (GOOGL) are the original shares issued by the company when it went public in 2004. These shares come with voting rights and are owned by the company’s founders, insiders, and early investors. On the other hand, Class C shares (GOOG) were introduced in 2014 as a way to issue more shares without diluting the voting power of Class A shareholders. These shares don’t come with voting rights but offer investors an opportunity to invest in Google at a lower price.
Price Differences
One of the key differences between Class A and Class C shares is the price. As of 2023, Google Class A shares were trading at around $3,000 per share, while Class C shares were trading at around $2,500 per share. This means that investors can buy more Class C shares for the same amount of money.
Voting Rights
Another significant difference between the two classes of shares is voting rights. As mentioned earlier, Class A shares come with voting rights, while Class C shares do not. This means that Class A shareholders have a say in the company’s major decisions, while Class C shareholders don’t.
Dividends
When it comes to dividends, both Class A and Class C shareholders are treated equally. Google doesn’t pay dividends, so investors in both classes of shares don’t receive any income from their investment.
Liquidity
Liquidity refers to the ease with which investors can buy and sell shares. Class A shares are less liquid than Class C shares because they are held by insiders and early investors who don’t trade their shares frequently. On the other hand, Class C shares are more liquid because they are held by a larger number of investors and are traded more frequently.
Risk
When it comes to risk, both Class A and Class C shares carry the same level of risk. The value of both classes of shares can fluctuate based on market conditions, and investors can lose money if they sell their shares at a lower price than they bought them.
Investment Strategy
If you’re looking for voting rights and are willing to pay a higher price for your investment, Class A shares might be the right choice for you. On the other hand, if you’re looking for a lower-priced investment with equal dividend treatment and no voting rights, Class C shares might be a better fit.
Conclusion
In summary, Google Class A and Class C shares have significant differences when it comes to price, voting rights, liquidity, and investment strategy. As an investor, it’s important to understand the pros and cons of each class of shares before making your investment decision. We hope this article has provided you with valuable insights into the differences between Google Class A and Class C shares.
