The difference between GOOG and GOOGL is really simple to understand. If you are someone who is actively engaging in stocks and shares, you know how large companies are classifying their stakes.
Many companies are taking this step to exercise their rights and privileges. There is nothing to confuse between the multiple shares of the company. It is only a matter of voting and non-voting. You can choose your shares like-wise.
Here’s everything you need to know about GOOG and GOOGL.
Difference Between GOOG And GOOGL
The Alphabet was an entirely private entity. Now, it has turned itself into a public one. As we all know, Alphabet is a parent company of Google, YouTube, and many more renowned platforms. It was actually a private company when it started. It has several applications and companies spanning from Alphabet A to Z.
Many stock buyers are interested in Alphabet shares. However, Google has classified its shares into GOOG and GOOGL, when it went public. The reason is, the company is turning into a public entity. For any private company to turn into a public one, there are some limitations.
No company would give away its entire rights and empowerment. Every company has its own right to execute things on its own and every company wants to preserve the same. Hence, Alphabet has classified its stake rights into 3 categories.
Class A: GOOGL
In 2004, when Google first went public, it started with the ticker share named GOOGL. It had voting access for the company’s decisions like selecting board members, implementing new updates, and stuff.
In 2004, the company created this one class specifically for its board members. The Class B shares can only be purchased by its own board members and are 10 times the value of Class A.
Here, all the members have the right to make the decisions for the company, in the form of voting. But the empowerment of Class B people is greater than that of Class A ones. This has to go without mentioning, though.
Class C: GOOG
Google realized it has given out its rights to the Class A people who are not board members. And, Class B decisions are all influenced by the Class A people.
So, Google launched one more ticker class – Class C named GOOG. The GOOG class has no authority to vote for any of its decisions. The Class C investors just benefiting from their investment portfolio.
Which Stake class should you invest in – GOOG or GOOGL?
Both the stakes hold equal profits and portfolios. So, you can choose to invest in either of the stakes. If you want to vote Google or Alphabet for their decisions, do choose GOOGL. But the thing you need to keep in mind while choosing GOOGL is, you need to do complete research of the company portfolio.
Of course, without good research, you can vote randomly, but that’s not what benefits the company. And certainly, that’s not what will come back to you.
Probably, for this reason, the company launched one more ticker share. If you are not that interested in knowing the company well, you can simply invest in their portfolios, without voting for them. This will benefit both you and the company.
Which share ticker is better – GOOG or GOOGL?
Both the values of the share are exactly the same. They just differ in voting rights. And if you analyze it well, you would know, investors are preferring GOOG over GOOGL. Even board members are preferring the same.
None is superior or inferior to another one. But if you are simply willing to invest without interfering in the company’s decisions, go with GOOG.
If you think, your vote matters and your investment would be safer with the right to vote, exercise the same and go with the GOOGL one.
Honestly speaking, your vote matters but to an extent. At last, the founding members would be the ones to decide. The final word would be always theirs. Alphabet being originally a private company, they have given a public privilege but with limitations. It is not bound to follow all that the public votes for.
So yes, your votes definitely matter but to an extent. And even opting for GOOG, will benefit you the same.
The difference between GOOG and GOOGL is this simple, you can vote or you cannot vote. Now the choice is yours. Both the shares are equally valued.
Which one will you invest in and why? Do comment below.
Still confused? Let us know your query regarding shares in the comments below and we will come up with a detailed analysis of the same.