When investing in Alphabet Inc. stocks, you will encounter two common types: GOOG and GOOGL. While both represent ownership in the company, the key difference between them lies in voting rights. This article will help you understand the differences between these two types of shares and how to choose the right one for your investment.
1. Goog stock
- Stock Type: Class C
- Voting Rights: None
- Shares Outstanding: 5.53 billion (according to Alphabet Inc.’s latest 10-Q report)
GOOG shares are non-voting stocks issued by Alphabet Inc. The main distinction between GOOG and GOOGL shares is the voting rights. GOOG shares do not allow owners to participate in votes at shareholder meetings, meaning that GOOG shareholders cannot directly influence the company’s key decisions.
Since GOOG shares do not come with voting rights, they are typically priced slightly lower than GOOGL shares, but still represent ownership in Alphabet Inc. For investors who do not need to participate in corporate governance but wish to capitalize on Alphabet’s long-term growth potential, GOOG shares may be a reasonable choice.
2. Gool stock
- Stock Type: Class A
- Voting Rights: One vote per share
- Shares Outstanding: 5.84 billion
GOOGL shares are the common stock issued by Alphabet Inc., with a notable feature of allowing shareholders to vote in shareholder meetings. Each GOOGL share provides one vote, which enables shareholders to directly influence major company decisions, such as policy changes and strategic direction.
Due to these voting rights, GOOGL shares typically trade at a higher price compared to GOOG shares. Although the price difference is not substantial, for investors who want a say in important matters within Alphabet, GOOGL shares may be a more appealing option
3. The difference between goog and gool stocks
Google, now part of Alphabet Inc., issues two main types of publicly traded stocks: Class A shares (GOOGL) and Class C shares (GOOG). While both represent ownership in the company, the biggest difference between them lies in voting rights. Class A shares (GOOGL) grant the shareholder voting rights on important company decisions, while Class C shares (GOOG) do not provide this right.
In addition to these two types of shares, Alphabet also issues Class B shares, which are not publicly traded and are owned by the founders, such as Larry Page and Sergey Brin, along with other insiders. These shares provide superior voting rights and control a majority of the company’s decisions.
4. Should you buy goog or gool?
When deciding whether to buy GOOG or GOOGL shares, the most important factor to consider is the voting rights. If you’re an individual investor and don’t mind not having influence on the company’s strategic decisions, owning GOOG shares (without voting rights) might be a reasonable choice, as they are typically priced slightly lower than GOOGL shares (with voting rights).
However, in practice, voting rights within Alphabet don’t significantly affect retail investors. The company’s founders, like Larry Page and Sergey Brin, retain the majority of voting power, meaning they still make the major decisions for the company. Therefore, the voting rights difference is not a crucial factor for most investors.
Both types of stocks tend to move in the same direction in the market, and the price difference between them is typically small, ranging from 1% to 2%. So, when deciding to buy stock, a reasonable choice is to select the cheaper option at the time of purchase.
Forecasts for GOOG and GOOGL stock prices in the near future also show similar market movements, with algorithms predicting that both stocks will exhibit almost identical performance over the next 12 months.
In conclusion, the main difference between GOOG and GOOGL stocks lies in voting rights, but this does not significantly impact retail investors’ decisions. The choice between the two will depend on your personal preferences and investment goals.
