Introduction
If you’re looking into investing in Google stock, you might have come across the terms “Class A” and “Class C” shares. While both are issued by the same company, they have different characteristics that can affect your investment decision. In this article, we’ll explore the differences between Google Class A and C shares.
What are Class A and C Shares?
Class A shares are typically held by the founders, executives, and other insiders of the company. These shares have more voting rights than Class C shares, meaning that the owners have more control over the company’s decisions. Class A shares also have a higher price than Class C shares. Class C shares, on the other hand, are typically held by the general public. They have fewer voting rights than Class A shares, but they are also more affordable. Class C shares were introduced by Google in 2014 as a way to issue new shares without diluting the voting power of the Class A shareholders.
Price Difference
As mentioned earlier, Class A shares have a higher price than Class C shares. This is because Class A shares have more voting power and are typically held by insiders who have more control over the company’s decisions. In contrast, Class C shares are more affordable and are designed for the general public.
Dividends
Both Class A and C shares are entitled to the same dividends. This means that if Google pays a dividend to its shareholders, both Class A and C shareholders will receive the same amount per share they own.
Trading Volume
Class A shares typically have a lower trading volume than Class C shares. This is because Class A shares are held by insiders who are less likely to sell their shares. In contrast, Class C shares are held by the general public, who are more likely to buy and sell shares frequently.
Tax Implications
There are no significant tax differences between Class A and C shares. Both types of shares are subject to the same tax laws and regulations.
Which Should You Choose?
The decision to invest in Class A or C shares ultimately depends on your investment goals and risk tolerance. If you’re looking for more control over the company’s decisions, Class A shares might be a better fit for you. However, if you’re looking for a more affordable investment option, Class C shares might be a better choice.
Conclusion
In summary, Class A and C shares have different characteristics that can affect your investment decision. While Class A shares have more voting power and a higher price, Class C shares are more affordable and have a higher trading volume. Ultimately, the decision to invest in either type of share depends on your investment goals and risk tolerance.
