JamesHackerMP Posted May 14, 2018 Report Share Posted May 14, 2018 It seems that Alphabet, Inc. (the parent company of Google, iow) has two different types of stock floating on the NASDAQ, at approximately the same share price. It used to be just GOOG but now there is GOOGL. Anyone have any clue what the difference between the two is? I'm confused. Quote Link to comment Share on other sites More sharing options...
bush_cheney2004 Posted May 14, 2018 Report Share Posted May 14, 2018 Looks like different classes of split shares to keep the founders very rich. Good question...I never knew. https://www.investopedia.com/articles/markets/052215/goog-or-googl-which-google-should-you-buy.asp Quote Link to comment Share on other sites More sharing options...
JamesHackerMP Posted May 15, 2018 Author Report Share Posted May 15, 2018 A gigantic corporate scam that probably wasn't even approved by shareholders. I don't mind keeping the founders rich, whatever that's capitalism; but this is a dilution of the control of the owners of the corporation by other owners (insiders or control persons). What a bunch of twats. If they own all these B-shares which control the company for real, it's not even really a publicly traded company at all, is it? Quote Link to comment Share on other sites More sharing options...
bush_cheney2004 Posted May 15, 2018 Report Share Posted May 15, 2018 Well, a lot have corporations have separate, preferred classes of shares that are not always available to the general public, so I guess it is legal (SEC). Quote Link to comment Share on other sites More sharing options...
JamesHackerMP Posted May 16, 2018 Author Report Share Posted May 16, 2018 Pretty unethical and shareholder un-friendly if you ask me. Quote Link to comment Share on other sites More sharing options...
JamesHackerMP Posted May 18, 2018 Author Report Share Posted May 18, 2018 Actually, I might add: the preferred classes of shares typically do not hold ownership value (votes). THese class B private shares that control most of Alphabet, Inc. are not preferred stock, they're more like common stock (ownership of the company in common, hence the name). But they're kept from the public. It sounds like Alphabet's executives are trying to have their financial cake and eat it too. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.