goog vs googl stock: What's the difference?

This article explains GOOG vs GOOGL stock — the two publicly traded tickers for Alphabet Inc. covering share‑class mechanics, history, price behavior, trading/liquidity implications, governance ris...

2024-07-17 03:25:00

By Crypto Trailblazer

Article rating

4.6

105 ratings

Bitget offers a variety of ways to buy or sell popular cryptocurrencies. Buy now!

A welcome pack worth 6200 USDT for new users! Sign up now!

GOOG vs GOOGL

GOOG vs GOOGL stock refers to the two U.S. tickers for Alphabet Inc.’s publicly traded shares. GOOG is Alphabet’s Class C (non‑voting) stock and GOOGL is Class A (one vote per share). Both classes provide the same economic exposure to Alphabet’s business, but they differ in voting rights and, at times, in price and liquidity.

As a quick reading guide: this article covers Alphabet’s share‑class structure, the historical corporate actions that created and adjusted those classes, the practical trading and governance differences between GOOG and GOOGL stock, price and arbitrage dynamics, convertibility rules, risks, and common investor questions. If you trade or plan to hold Alphabet shares, understanding the GOOG vs GOOGL stock distinction clarifies voting influence and execution choices.

As of July 15, 2022, according to Alphabet Investor Relations, a 20‑for‑1 stock split for Alphabet shares took effect, which adjusted trading prices and share counts across classes. As of April 2014, according to Investopedia, Alphabet (then Google) completed the creation and distribution of Class C shares to preserve founder voting control. As of August 19, 2004, according to historical SEC filings and contemporaneous reports, Google completed its initial public offering (IPO), which established the company as a publicly traded entity.

Overview

Alphabet Inc. is the parent company of Google and a portfolio of businesses spanning search, advertising, cloud computing, hardware, AI, and other bets. Investors seeking exposure to Alphabet’s economic performance can buy shares that trade under different tickers; the primary U.S. exchange tickers are GOOG and GOOGL stock. While both tickers represent ownership in Alphabet’s consolidated equity value, the rights attached to each share class drive differences in governance and occasional market pricing.

Alphabet’s Share Class Structure

Alphabet uses a multi‑class share structure with three principal classes of common stock: Class A, Class B, and Class C. The structure was designed to allow the company’s founders and certain insiders to retain decisive voting control while enabling public capital raising and, later, additional equity issuance.

Class A (GOOGL)

Class A shares trade under the ticker GOOGL. Each Class A share carries one vote per share. Class A holders therefore participate in shareholder votes (e.g., electing directors, approving certain corporate actions) in proportion to their holdings. For many retail investors, owning GOOGL stock is the straightforward path to both economic exposure and voting participation in Alphabet’s governance.

Class B (founders — not publicly traded)

Class B shares are not publicly traded and are primarily held by founders and insiders. Class B shares carry enhanced voting power—historically set at 10 votes per share—which concentrates control with insiders. Because Class B shares are closely held and non‑exchange‑listed, public investors cannot buy them on the open market. The presence of Class B shares explains why public shareholders (even GOOGL holders) often have limited influence over key strategic decisions.

Class C (GOOG)

Class C shares trade under the ticker GOOG. Class C shares generally carry no voting rights. The Class C structure was created to allow Alphabet to issue additional equity (for acquisitions, employee compensation, etc.) without diluting the voting control of founders and Class B holders. Economically, Class C shareholders have the same rights to dividends and distributions (when authorized) as Class A shareholders, but they do not vote.

Historical Timeline and Corporate Actions

2004 — IPO: As of August 19, 2004, Google completed its initial public offering and began trading publicly, establishing the foundation for later share‑class developments.
2014 — Creation of Class C: As of April 2014, according to Investopedia and company filings, Google implemented the issuance of Class C non‑voting stock (GOOG) to enable share grants and capital needs while protecting founder voting control.
2015 — Alphabet reorganization: In 2015 Google restructured under a new parent holding company, Alphabet Inc., consolidating Google and other subsidiaries under Alphabet.
2022 — Stock split: As of July 15, 2022, according to Alphabet Investor Relations, Alphabet executed a 20‑for‑1 stock split, which changed the per‑share trading prices and increased the total number of outstanding shares across classes.
Ongoing — Compensation and issuances: Alphabet periodically issues shares for employee compensation and acquisitions, often using Class C shares to avoid diluting founder voting power.

These milestones are relevant when comparing GOOG vs GOOGL stock because corporate actions can affect relative share counts, liquidity, and investor perceptions of governance tradeoffs.

Key Differences Between GOOG and GOOGL

Voting rights: The primary distinction is voting. GOOGL (Class A) normally carries one vote per share; GOOG (Class C) carries no voting rights. This difference is central to governance and shareholder influence.
Economic rights: Both classes share the same economic claim on Alphabet’s assets, earnings and distributions. If Alphabet declares dividends or special distributions, both classes are treated equivalently unless a specific plan states otherwise.
Price and liquidity: GOOG vs GOOGL stock usually trade very closely in price, but small spreads can appear due to demand differences, index rebalancing, or option market activity. Liquidity and option availability may differ between the two tickers.
Index inclusion and ETF handling: Index providers and ETFs may prefer one share class for inclusion; this can create temporary demand differences and price divergence between GOOG vs GOOGL stock.

Economic Rights, Dividends and Other Financial Terms

Alphabet historically prioritized reinvestment and growth over recurring cash dividends. Nonetheless, both Class A (GOOGL) and Class C (GOOG) shares carry equal economic claims: when the company’s board authorizes dividends or other distributions, those rights generally apply equally across share classes. Investors should consult Alphabet’s investor relations and recent SEC filings for exact dividend policies and any class‑specific conditions.

Practical implication: owning GOOG vs GOOGL stock gives the same exposure to earnings per share (EPS), cash flows and total return from price appreciation, subject to market price differences. From a financial rights perspective, the two tickers are economically equivalent.

Price Behavior, Premiums/Discounts and Arbitrage

In efficient markets, two securities with the same economic claim should trade at near parity. For GOOG vs GOOGL stock, spreads are usually small: differences often range from a few cents to a fraction of a percent of price, though short periods of wider divergence can occur. Common drivers of temporary spreads include:

Demand imbalances: Retail and institutional preferences for voting rights or specific tickers.
Index rebalancing: ETFs or indices that track particular share classes can create short‑term buying/selling pressure.
Options and derivatives liquidity: If one class has deeper options markets, traders may favor that ticker for hedging or strategies.
Corporate action expectations: Anticipated share issuances or governance proposals can influence relative pricing.

Institutional arbitrageurs and market‑makers typically exploit and narrow these price differences. For most retail investors, any small price gap between GOOG vs GOOGL stock is unlikely to materially affect long‑term returns, but traders focusing on short‑term execution may care about the spread.

Trading, Liquidity and Execution Considerations

Liquidity: Both GOOG and GOOGL are highly liquid large‑cap names, but liquidity depth can vary by ticker and time of day. Bid/ask spreads are typically tight for both on U.S. exchanges, yet one ticker may show slightly better quoted depth or narrower spreads at a given moment.

Options market: Historically, one class may have had a deeper options market than the other. Traders preferring robust options liquidity and variety of strikes may select the class with more active option chains.

Execution choice: When placing trades, investors should check real‑time quotes and displayed volumes for GOOG vs GOOGL stock. For small retail trades, differences are usually negligible. For larger institutional orders, even small spread or depth differences matter. When choosing where to execute, consider using a regulated broker or platform; for readers on Bitget, consider Bitget’s U.S. equities or related brokerage services where available and compliant with local regulation.

Order routing: Marketable limit orders, limit orders, and using midpoint or passive order types can reduce execution costs. If you intend to capture voting rights specifically, ensure you buy GOOGL shares rather than GOOG.

Investment Considerations and Which to Buy

If voting rights matter: Choose GOOGL. If you want to participate in shareholder votes (election of directors, say on corporate governance matters), GOOGL gives you one vote per share.
If voting rights do not matter: GOOG can be suitable. Some investors buy GOOG for the same economic exposure but at a slightly different price point.
For most retail investors: The economic outcome (capital gains, dividends) is effectively similar between GOOG vs GOOGL stock, so other factors such as liquidity, trading costs, or fractional availability may guide the choice.

Remember: This content is informational and not investment advice. Consider consulting a licensed financial advisor and checking the latest company filings before making investment decisions.

Corporate Governance and Shareholder Influence

Multi‑class structures concentrate control with holders of high‑voting shares. With Alphabet, Class B shares (10 votes per share) remain concentrated among founders and insiders, giving them decisive influence over board composition and strategic direction. Even GOOGL holders (one vote per share) have limited collective influence compared to Class B holders.

Implications:

Activist campaigns face structural hurdles; without control of Class B shares, public shareholders have constrained power to force management changes.
Long‑term strategic decisions by insiders may proceed even if a majority of public investors disagree, given the voting weight retained by Class B holders.
Corporate governance evaluations by institutional investors often weigh the governance risks of multi‑class companies against business performance and alignment incentives.

For investors who prioritize governance influence, the presence of Class B super‑voting shares is a material consideration when assessing GOOG vs GOOGL stock.

Tax, Regulatory and Index Considerations

Tax considerations: Holding GOOG vs GOOGL stock does not, by itself, change the basic tax treatment of capital gains or dividends for U.S. taxable investors. Taxes depend on holding period, account type and jurisdictional rules. If you switch between classes, be mindful of realized gains/losses and any wash‑sale implications for tax reporting.

Regulatory and index issues:

Index inclusion: Major indices and ETFs may select one share class for inclusion; index tracking flows can temporarily affect demand for that class.
Listing rules: Both classes are listed on U.S. exchanges and subject to SEC disclosure and reporting requirements. Check recent filings for regulatory updates.

As with any tax or regulatory question, consult a tax professional or legal advisor for guidance specific to your situation.

Convertibility and Share Conversions

Class A and Class C shares are not generally interchangeable through a direct conversion process available to public holders. Converting between GOOG vs GOOGL stock typically requires selling one class and buying the other in the open market, which may trigger taxable events. Company policies regarding share exchanges or conversions are specified in charter documents and SEC filings; there is no routine automatic conversion between Class A and Class C for public investors.

Historically, Alphabet has used share issuance strategies (e.g., issuing Class C shares) rather than offering direct conversions to public holders. Investors should review the company’s charter and shareholder communications for any exceptional conversion provisions.

Risks Specific to Multi‑Class Share Structures

Governance entrenchment: Founders or insiders with super‑voting shares can entrench leadership and limit accountability.
Minority shareholder influence: Public holders of GOOGL and GOOG stock may have limited ability to effect governance changes.
Market perception premium/discount: Investors may price voting rights or governance risk into GOOGL vs GOOG stock differently, creating valuation spreads.
Activist constraints: Activists seeking strategic change may be deterred by the vote concentration in Class B shares.

These governance risks can influence an investor’s assessment of GOOG vs GOOGL stock beyond pure financial metrics.

Frequently Asked Questions (FAQs)

Q: Do GOOG and GOOGL pay the same dividend? A: Yes — when Alphabet declares dividends, the economic rights are intended to be consistent across share classes. Historically Alphabet has not paid a regular dividend and has focused on reinvestment; check the latest investor relations statements for any updated dividend policy.

Q: Can I vote if I own GOOG? A: No. GOOG (Class C) shares generally carry no voting rights. If voting is important, purchase GOOGL (Class A) shares.

Q: Why did Alphabet create Class C shares? A: The company created Class C shares to issue equity (for employee compensation, acquisitions, or capital needs) without diluting the voting control of founders who hold Class B super‑voting shares.

Q: Which ticker is included in major indexes? A: Index inclusion can vary by index provider and timing. Some indices and ETFs use GOOGL while others may use GOOG; indexing rules and historical choices can cause temporary demand differences. Check the methodology of the specific index or ETF for the most current inclusion policy.

Q: Are GOOG and GOOGL convertible into each other? A: Not directly for public investors. Converting typically requires selling one class and purchasing the other in the market. Consult Alphabet’s charter and filings for any special provisions.

Q: Does the 20‑for‑1 split change the governance structure? A: The 2022 stock split adjusted share counts and per‑share price but did not change the multi‑class voting rights structure. As of July 15, 2022, according to Alphabet Investor Relations, the split took effect but voting rights per class remained as defined.

References and Further Reading

Below are the primary sources used for factual background and timeline verification. These are recommended for readers who want primary filings and deeper explanations:

Alphabet Investor Relations — FAQs & General Information (company charter details, stock split announcements, governance FAQs)
Investopedia — Articles on Alphabet’s GOOG vs GOOGL (history and mechanics of the classes)
Investing.com — Explanations of GOOG vs GOOGL differences (trading and classification notes)
Motley Fool — Guides on how to buy Google/Alphabet stock and class distinctions
Slickcharts — Comparative historical price and liquidity notes for GOOG vs GOOGL
MatchMyBroker / Winvesta / InvestGuiding — Educational pieces comparing the two tickers and investor choices

As of the specific dates noted above, those sources reported: the 2004 IPO date, the 2014 creation/distribution of Class C shares, and the July 15, 2022 20‑for‑1 stock split that changed per‑share pricing.

Practical next steps and how Bitget fits in

If you want to trade U.S. equities like GOOG vs GOOGL stock, choose a regulated broker or trading platform that lists U.S. stocks and provides clear execution tools. For users of Bitget, explore Bitget’s equities or trading offerings where available and compliant with local rules; Bitget also provides custody and wallet options such as Bitget Wallet for related asset management needs. Always verify the availability of specific tickers on your chosen platform and check fees, order routing, and regulatory compliance.

Further exploration: monitor Alphabet investor relations for the latest filings, and watch index/ETF announcements that may shift demand between GOOG and GOOGL stock.

Note on data and timeliness: the historical dates and corporate actions cited above are reported by company filings and reputable financial outlets. As of July 15, 2022, according to Alphabet Investor Relations, the 20‑for‑1 stock split took effect. As of April 2014, according to Investopedia, Class C shares were created and distributed to shareholders. As of August 19, 2004, per SEC filings and contemporaneous reports, Google completed its IPO.

This article is informational and not investment advice. For tax, legal or financial advice tailored to your circumstances, consult qualified professionals.

Explore more practical guides and trade execution options on Bitget to act on your research and manage positions responsibly.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.