Alphabet Inc (GOOG, GOOGL): Understanding the Share Classes

What is Alphabet Inc.?

Alphabet Inc. is a holding company that operates through various subsidiaries, including Google, Waymo, and Verily.

Share Classes

Alphabet Inc. has two share classes:

• Class A shares (GOOGL)
• Class C shares (GOOG)

Class A Shares (GOOGL)

Class A shares are publicly traded and have one vote per share.

Class C Shares (GOOG)

Class C shares are not publicly traded and have no voting rights. These shares are primarily held by Alphabet's founders, Larry Page and Sergey Brin.

Difference between GOOG and GOOGL

The primary difference between GOOG and GOOGL shares is the voting rights. Class A shares (GOOGL) have voting rights, while Class C shares (GOOG) do not.

Pricing and Performance

The price of GOOG and GOOGL shares typically moves in tandem. However, there may be slight price differences due to the voting rights.

Which Share Class to Invest In?

The choice between GOOG and GOOGL shares depends on your investment goals:

• Voting rights: If you desire voting rights in Alphabet Inc., invest in GOOGL shares.
• Liquidity: GOOGL shares are more liquid due to their public trading, while GOOG shares are less liquid.

Conclusion

Alphabet Inc.'s two share classes provide investors with different options based on their objectives. Class A shares (GOOGL) offer voting rights and higher liquidity, while Class C shares (GOOG) are closely held by the company's founders.