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why are there two ticker symbols for google ( GOOGL and GOOG ), they seem to be mostly identical but when I look at their market values they result in different values

currently: 551.64 for GOOGL https://www.google.com/finance?q=NASDAQ%3AGOOGL

and 548.79 for GOOG https://www.google.com/finance?q=NASDAQ%3AGOOG

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1 Answer 1

up vote 24 down vote accepted
  • GOOG stock represents Class C shares, while GOOGL stock represents Class A shares.
  • Class C shares (GOOG) have no voting rights, while Class A shares (GOOGL) have one vote each.
  • Anyone who owned Google stock before the split got one share of the voting GOOGL stock and one share of the non-voting GOOG stock.
  • Of course, there are also Class B shares of Google stock, which do not trade in the public market, are owned by Google insiders and each get ten votes.
  • The fine print: Every time the company sells a share of Class C stock, it also must convert one Class B share into a Class A share.
  • Also, Google (as the result of a class-action settlement around the stock split) will compensate non-voting GOOG stock investors in a year if there is a substantial difference in price between the two classes.
  • Google Class A and C shares will both be represented on Nasdaq OMX indices such as the Nasdaq-100 through June 20. Thus, the Nasdaq-100 will actually have 101 constituents during this time.
  • Google Class A shares will stop being listed on Nasdaq OMX indices after the quarterly rebalance on June 23, and Google instead will be represented on such indices by the Class C shares. Class A shares will continue to trade on the exchange, however.

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6  
... of course... –  Lightness Races in Orbit Apr 9 at 0:30

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