Introduction
In the world of finance, the terms GOOG and GOOGL are often used interchangeably. However, they are not the same thing. In fact, they represent two different classes of stock that Google issues. In this article, we will explore the difference between GOOG and GOOGL.
Class A and Class C Shares
Google has two classes of stock: Class A and Class C. Class A shares are designated with the ticker symbol GOOGL, while Class C shares are designated with the ticker symbol GOOG. The main difference between the two classes of stock is voting rights.
Class A shares come with one vote per share, while Class C shares do not have any voting rights. This means that if you own Class A shares, you have a say in how the company is run. If you own Class C shares, you do not.
Why Two Classes of Stock?
Google’s decision to issue two classes of stock was driven by its founders, Larry Page and Sergey Brin. They wanted to maintain control of the company while still raising capital through a public offering. By issuing Class A shares with voting rights, they were able to retain control of the company while still allowing investors to buy shares.
Price Differences
Another difference between GOOG and GOOGL is the price. Class A shares (GOOGL) typically trade at a higher price than Class C shares (GOOG). This is because Class A shares come with voting rights, which makes them more valuable to investors.
Dividends
Both GOOG and GOOGL pay dividends to their shareholders. However, the dividends are not equal. Class A shares (GOOGL) receive a higher dividend than Class C shares (GOOG). This is because Class A shares are more valuable due to their voting rights.
Which Class of Stock Should You Buy?
Deciding which class of stock to buy depends on your investment goals. If you want to have a say in how the company is run, then Class A shares (GOOGL) are the way to go. However, if you are simply looking for an investment in Google without any voting rights, then Class C shares (GOOG) may be a better option.
Conclusion
In summary, GOOG and GOOGL are two different classes of stock that Google issues. The main difference between the two classes is voting rights. Class A shares (GOOGL) come with voting rights, while Class C shares (GOOG) do not. Additionally, Class A shares typically trade at a higher price and receive a higher dividend than Class C shares. Deciding which class of stock to buy depends on your investment goals.
Disclaimer:
The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Investing in the stock market involves risk, and you should always consult with a financial advisor before making any investment decisions.
