Every company that wishes to raise funds from the public needs to be registered in the stock market. Google is one of the tech giants that raises funds from the public but in a different manner.
In 2012, Google announced a 2-for-1 stock that later came into effect in the year 2014. GOOG and GOOGL are two sets of shares announced by Google.
Key Takeaways
- GOOG is the stock symbol for Class C shares of Google’s parent company, Alphabet Inc., while GOOGL represents Class A shares.
- Class C shares do not have voting rights, while Class A shares carry one vote per share.
- Class C shares are cheaper than Class A shares but may not offer the same level of shareholder control.
GOOG vs GOOGL
GOOG are Class C shares that are used by the Google Company and do not provide any voting rights to the shareholders, and they are compensated if the price falls below one percent. GOOGL refers to Class A shares issued by Google, and each shareholder has one vote in the decision-making processes.
GOOG set of shareholders do not enjoy any voting rights in the company; hence, they are not involved in the decision-making process.
Google promised this set of shareholders that it would compensate them in case the price of shares fell below 1 percent.
GOOGL set of shareholders enjoy voting rights in the company and hence can take part in the decision-making process. They are also referred to as Class-A shares.
These shares are issued by Alphabet Inc., founded in 2015 through a reconstruction of Google.
Comparison Table
| Parameters of Comparison | GOOG | GOOGL |
|---|---|---|
| Class of shares | GOOG refers to Class C type of shares. | GOOGL refers to Class A type of shares. |
| Institutional holders | The major institutional holders of GOOG shares are J.P. Morgan Chase & Company, Capital International Investors, and Alliance Bernstein. | The major institutional investors of GOOGL shares are State Street Corporation, Norges Bank Investment Management, and Blackrock Inc. |
| Voting Rights | The shareholders of GOOG do not enjoy any voting rights due to which they have no power to make decisions. | The shareholders of GOOGL enjoy voting rights due to which they have the power to make decisions. |
| Fees charged | Since GOOG is a Class C share, a fee is imposed throughout the holding period. | Since GOOGL is a Class A share, a fee is imposed at the purchase of the share. |
| Special considerations and discounts | This set of shares are not eligible for bulk discounts | This set of shares are eligible for bulk discounts and special considerations. |
| Incentives | GOOG provides incentives and benefits to mainly short-term investors who prefer intra-day trading. | GOOGL shares provide incentives to long-term investors. |
What is GOOG?
The 2-in-1 split of Google caused the formation of GOOG, which is a Class-C share.
Many shareholders who were allotted GOOG shares were unhappy at that time as they were granted no power of voting.
When the split took place, the shareholders were allotted half of GOOG shares and half of GOOGL shares, taking into consideration their previous holdings.
One of the major characteristics of GOOG shares is that when this share is sold, a share of class B must be converted to class A.
One of the major demerits of this set of shares is that the shareholders do not enjoy any voting rights, due to which they cannot participate in the decision-making process.
In the year 2020, the share price of GOOG stood among the top 8 share prices in the United States stock market. GOOG offers its services in various domains. It was one of the top 100 Digital companies in the world in the year 2019.
It was also ranked 13th position by Forbes magazine in its Top 2000 Company list and 5th in its Just Companies 2021 survey.
The performance of this stock has been mixed; it was at its highest in 2020, but since the start of 2021, it has constantly been falling.
What is GOOGL?
When the split happened in the year 2014, people were also allotted GOOGL shares, the shareholders who have been allotted these shares were satisfied as these shares carry voting rights that provide them a say in the decision-making process.
GOOGL provides its services in various fields. Google Chrome, Google Play Store, and Google Maps are some of its well-known products.
The GOOGL stock has gained almost 100% in the past 5 years. It is a Class A share of Google, due to which it is eligible for huge discount considerations.
The Class A share charges a term called front-load, which means that the shareholder is obliged to pay a portion of the purchase every time he/she buys the shares.
If an individual is a long-term investor, then he/she must prefer buying GOOGL shares as it will fetch them a better return in the next 10 years. This is because it is a Class A share.
This stock has been performing well since its listing. It may not be as profitable to short-term investors, but it has made long-term investors wealthy.
Main Differences Between GOOG and GOOGL
- GOOG is a Class C share, whereas GOOGL is a Class A share.
- GOOG shares are highly profitable for short-term investors, whereas GOOGL shares have been highly profitable for long-term investors.
- The prominent Institutional investors of GOOG are J.P. Morgan Chase & Company, Capital International Investors, and Alliance Bernstein. On the other hand, the prominent Institutional investors of GOOGL are State Street Corporation and Norges Bank Investment Management.
- The GOOG shares do not enjoy any sort of voting rights, whereas the shareholders of GOOGL shares enjoy voting rights.
- GOOG shares are not eligible for bulk discounts, whereas GOOGL shares are eligible for special considerations and discounts.
- https://www.sciencedirect.com/science/article/pii/S0304405X11000717
- https://www.sciencedirect.com/science/article/pii/S0304405X97000457
I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️
The informative nature of this article makes it a valuable resource for both new and experienced investors who seek clarity on GOOG and GOOGL shares.
Absolutely, this level of detail is immensely helpful for anyone navigating the stock market.
I appreciate the thorough analysis provided here. It’s highly beneficial for decision-making in investment.
An exceptional article with a well-structured comparison between GOOG and GOOGL. The detailed insights are commendable.
The discrepancy in voting rights between GOOG and GOOGL shares is a serious issue that investors need to carefully evaluate before making any decisions. This article has shed light on this matter effectively.
Yes, this article has highlighted the importance of voting rights when it comes to investment decisions. It’s crucial information.
Thank you for pointing that out, Paul. It’s a matter that significantly affects shareholder power.
While the article provides extensive information, it lacks a touch of sarcasm that would have made it more engaging.
I get what you’re saying, Adele. A bit of humor or sarcasm could indeed elevate the reading experience.
I see your point, Adele. A lighthearted approach might make complex financial details more captivating.
This article fails to address the potential risks associated with the GOOG and GOOGL shares. The focus seems biased towards emphasizing the benefits.
I agree, a more balanced view that includes the risks would make this article more comprehensive.
Very informative article that explains the key differences between GOOG and GOOGL shares so well. I appreciate the clarity of the information provided.
I agree, this article is very educational and has helped me understand these shares better.
The decisions made by Google to issue different classes of shares are still a topic of debate in the financial world. It’s crucial to understand the implications of these actions.
Definitely, the value of these different types of shares and their impact on investors is something that requires thorough analysis and consideration.
The article effectively outlines the advantages and drawbacks of GOOG and GOOGL shares, making it an insightful read for investors.
I find this article to be very factual and useful for understanding the implications of investing in different shares.
Totally agree. It’s important to be well-informed before considering investments in these shares.