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Google Class B stock is a unique type of stock that offers a distinct set of benefits to its holders.
One key advantage of Class B stock is that it comes with a 10-for-1 voting ratio, giving holders significantly more voting power than Class A shareholders.
This means that even with a smaller number of shares, Class B shareholders have a disproportionate say in the company's decision-making processes.
Class B shareholders also have the option to convert their shares to Class A shares, but this can only be done at the discretion of the shareholder and not the company.
Google Class B Shares
Google Class B shares are only held by company insiders, including members of the executive management team and the board of directors. These shares aren't intended for the general public.
Here's a breakdown of the different share classes:
- Class A (GOOGL): publicly traded Alphabet shares with voting rights.
- Class B: non-listed, non-traded shares held by founders and insiders, which confer 10x voting power of Class A shares.
- Class C (GOOG): publicly traded Alphabet shares with no voting rights.
How Many Class B Shares Does Google Have?
Google's Class B shares are a unique aspect of the company's ownership structure. They were created in 1999 to ensure that Google's founders, Larry Page and Sergey Brin, retained control of the company.
Google has a total of 12 Class B shares. These shares have 10 times the voting power of Class A shares, which is why they hold significant control over the company's decision-making process.
The Class B shares are owned by Google's founders and a few other key individuals.
Are Class B Shares More Valuable?
Actually, the article doesn't mention Class B shares, so there's no information to share on their value.
However, it's worth noting that the article does mention the introduction of Class C shares, which makes it more difficult for activists to gain enough voting power to influence the management.
In general, the price difference between Class A (GOOGL) and Class C shares (GOOG) is insignificant.
If you're looking to own voting rights and have your voice as a shareholder be heard, Alphabet's Class A shares might be a better option for you.
Alphabet's Share Price
Alphabet's Class B shares are only held by company insiders, including people from the executive management team and members of the board of directors.
These shares aren't intended for the general public, which means you won't find them on the open market.
Alphabet has other share classes, such as Class A shares (GOOGL), which are the company's common shares, giving investors voting and ownership rights.
Class C shares (GOOG) are also held by investors and company employees, but they don't offer investors any voting rights.
The Class A shares, on the other hand, give investors a say in the company's decisions, making them a more attractive option for those who want to have a voice in Google's future.
Frequently Asked Questions
What is the difference between Google A and B?
Google A (GOOGL) and Google B (Class B) differ in voting power, with Class B holding 10x the voting power of Class A, reserved exclusively for founders and insiders
What if I invested $1000 in Google 20 years ago?
If you invested $1,000 in Google 20 years ago, your investment would have grown to over $66,000 as of the current market close. This remarkable return highlights the potential of investing in innovative companies with strong growth prospects.
What is the difference between Class A and Class B Google shares?
Class A and Class B Google shares differ in availability, with Class A shares publicly traded and Class B shares reserved exclusively for company insiders
Sources
- https://drwealth.com/alphabet-class-a-googl-vs-class-c-goog/
- https://www.investopedia.com/articles/markets/011516/top-5-google-shareholders-goog.asp
- https://www.nerdwallet.com/article/investing/buy-google-stock
- https://money.stackexchange.com/questions/55513/whats-the-most-correct-way-to-calculate-market-cap-for-multi-class-companies
- https://collaborate.unpri.org/group/24996/home
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