Alphabet is the parent company of Google and it has launched two shares, which are GOOG and GOOGL (NASDAQ GOOGL). These are tickers and the only difference between them is that people who buy GOOG shares do not have the right for voting while the people who purchase GOOGL shares have this right. In the year 2014, two classes of shares were created by the company. The classes were later split in order to save the control of the company and it should remain in the hands of SergeyBrin and Larry Page. It is a fact that after a company is made public, there are chances that the founders may lose the control of the company.
Difference between GOOG and GOOGL
The mission of the Alphabet Company is to work on the commitment made by the founders and this mission is the organization of the information. This vision started to loose after the company was made public. This thing can force the shareholders to sell their shares. In order to avoid this problem, the method of stock split is adopted and this helps the founders to maintain their hold on the company. Now let us know about GOOG and OOGL.
This share has been given the rank of class A shares, which are categorized as common shares. This type of shares gives an opportunity to the investors to become the owner of the stake. They also get the opportunity of voting.
These shares have been categorized as class C shares. In this type of shares also the stakeholders get the right of taking ownership but voting rights are not available. This is the reason that these shares are available at a discount. These are different from C shares, which are used by different mutual funds.
Different classes of shares
There are different classes of shares, which are as follows.
· Class A shares
These shares are given to regular investors and they also get the right of voting.
· Class B shares
These are the shares whose owner is the founder or founders of the company. The owner if these shares have ten times more voting rights in comparison to the owner of class A shares.
· Class C shares
These shares are mostly purchased by the employees and they are not given any voting rights. Stockholders of class A shares can also purchase these shares.
There are situations when the investors make a group and they force the company to take initiatives, which is related to the profit of the shareholders. Such actions include cost cutting, buybacks of shares, and special kind of dividends. All these things can create problems for the founders and owners of the company. That is the reason the shares are classified into different categories. If you plan to buy the stock of GOOGL, you can check its balance sheet at https://www.webull.com/balance-sheet/nasdaq-googl.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.