Introduction
Google is one of the most successful companies in the world, and its stock has been a favorite of investors for years. However, with the company offering two different classes of shares, GOOG and GOOGL, investors are often confused about which one to buy. In this article, we will take a deep dive into both classes of shares and help you decide which one is the right choice for you.
What Are GOOG and GOOGL?
GOOG and GOOGL are two classes of shares offered by Google. GOOG stands for Class C shares, while GOOGL stands for Class A shares. The main difference between these two classes of shares is that GOOG shares do not come with voting rights, while GOOGL shares do.
GOOG Shares
GOOG shares were created in 2014 when Google announced that it would be splitting its stock. The split created two different classes of shares, with GOOG shares representing Class C shares. These shares do not come with voting rights and were designed to be used for employee compensation and acquisitions.
GOOGL Shares
GOOGL shares are Class A shares and were created at the same time as GOOG shares. Unlike GOOG shares, GOOGL shares come with voting rights. This means that investors who own GOOGL shares have a say in the company’s decisions, including the election of board members and major corporate actions.
Which One Should You Buy?
Deciding which class of shares to buy can be difficult, as it depends on your investment goals and risk tolerance. Here are some factors to consider when making your decision:
Voting Rights
If having a say in the company’s decisions is important to you, then GOOGL shares are the way to go. With GOOGL shares, you will have voting rights and can participate in important corporate decisions. However, if you are not concerned about voting rights, then GOOG shares may be a better option.
Price
Another factor to consider is the price of the shares. Generally, GOOG shares are priced lower than GOOGL shares. This means that if you are looking to invest in Google but have a limited budget, GOOG shares may be the way to go.
Dividends
Google does not currently pay dividends on its stock, so this factor is not relevant when deciding between GOOG and GOOGL shares.
Volatility
GOOG shares tend to be less volatile than GOOGL shares, as they are not tied to the same level of voting rights. This means that if you are a conservative investor who is looking for a stable investment, GOOG shares may be the better option.
Conclusion
Deciding whether to buy GOOG or GOOGL shares ultimately depends on your investment goals and risk tolerance. If you are looking for voting rights and are willing to pay a premium for them, then GOOGL shares may be the way to go. However, if you are not concerned about voting rights and are looking for a more stable investment, then GOOG shares may be a better option.
Regardless of which class of shares you choose, investing in Google can be a smart move for long-term investors. The company has a strong track record of innovation and growth, and its stock has the potential to provide solid returns over time.
