Alphabet's GOOG vs. GOOGL: What's the Difference?

What are class A and B and C shares?

Class A, B, and C shares are a common classification system used by companies to issue different types of stock with varying attributes.

Class A Shares

Class A shares typically come with voting rights, which means shareholders have a say in the company's decisions. These shares are usually held by the company's founders, insiders, or early investors to retain control.

Class B Shares

Class B shares often have more voting power per share than Class A shares. These are usually held by company insiders and executives.

Class C Shares

Class C shares usually do not carry voting rights or have significantly reduced voting rights. These are often issued to the public through initial public offerings (IPOs) and may be more affordable for retail investors.

For example: Alphabet, Inc. and Facebook, Inc. (Meta Platforms, Inc.) have class A, B, and C shares, and as per your choice of investment, you can invest in any of these.

Differences between GOOG and GOOGL

• Voting rights. GOOGL (class A shares) have voting rights and GOOG (class C shares) typically do not offer voting rights

• Price variations. GOOGL shares often trade at a slightly higher price compared to GOOG shares due to the voting rights associated with class A shares

• Earnings per share (EPS). GOOGL and GOOG may have different EPS values due to the varying number of outstanding shares

• Historical performance. GOOGL and GOOG may show subtle differences in historical stock performance, influenced by factors like investor sentiment and trading volume

• Investor profiles. GOOGL shares may attract investors seeking both potential returns and a say in corporate decisions. GOOG shares may appeal to investors primarily focused on capital gains without significant influence over the company

• Corporate governance. GOOGL shareholders may attend and vote in company meetings, potentially affecting the company's direction. GOOG shareholders generally have no direct role in corporate governance

• Insider holdings. Company insiders and founders may hold GOOGL shares to maintain control and influence in corporate matters. GOOG shares might be more widely held by public investors

Which is better to invest in: GOOG or GOOGL

The decision between investing in GOOG (Class C shares) or GOOGL (Class A shares) relies on your investment decision and choices. Understand this simplified breakdown before choosing.

GOOG (Class C):

• Typically more affordable than GOOGL shares

• It does not carry voting rights or has limited voting rights

• It's attractive if you're primarily interested in potential capital gains and don't require a say in corporate decisions

GOOGL (Class A):

• Often traded at a slightly higher price than GOOG shares

• It comes with voting rights, allowing you to have a say in corporate matters

• Suitable if you want both potential returns and the ability to influence company decisions

How to buy GOOG and/or GOOG?

To buy GOOG (Class C) or GOOGL (Class A) shares, follow these steps:

• 1

  Open a brokerage account

• 2

  Fund your account

• 3

  Research and analysis

• 4

  Place an order

• 5

  Choose your order type

• 6

  Specify the number of shares

• 7

  Review and confirm

For more detailed guidance on the steps, check out How to buy GOOGL stocks in 6 steps at Traders Union.

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