GOOG & GOOGL | TigerDroppings.com
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Boudin
LA-Lafayette Fan
Lafayette
Member since Oct 2006
9269 posts

GOOG & GOOGL

Good buy, since split?

And which is the better share to own?
This post was edited on 4/3 at 10:41 am



donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
12885 posts

re: GOOG & GOOGL
crazy. need to read more about this


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Lsut81
USA Fan
Member since Jun 2005
65829 posts

re: GOOG & GOOGL
quote:

Good buy, since split?


Ok, I'm just going off of what I have heard from the talking heads and I could have misheard/misinterpreted things. But isn't this a play by Google to gain more control over their stock


Boudin
LA-Lafayette Fan
Lafayette
Member since Oct 2006
9269 posts

re: GOOG & GOOGL
Correct, but it's more accessible to those without 50k to drop


ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3845 posts

re: GOOG & GOOGL
quote:

isn't this a play by Google to gain more control over their stock


I think it is more about the founders 'retaining' control of the company. The founders still own a majority of the stock shares, but it was being diluted every time they offered stock incentives for mergers and acquisitions. So they created non-voting shares that they can now offer instead.


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Lsut81
USA Fan
Member since Jun 2005
65829 posts

re: GOOG & GOOGL
quote:

Correct, but it's more accessible to those without 50k to drop



I highly doubt that the lower cost stock pays out the same dividend

So all in all, it would all be relative...


ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3845 posts

re: GOOG & GOOGL
quote:

I highly doubt that the lower cost stock pays out the same dividend



Google has never paid a cash dividend. This is from their investor FAQ...

quote:

Does Google pay a cash dividend?

No, we have never declared or paid a cash dividend nor do we expect to pay any cash dividends in the foreseeable future.

LINK



Lsut81
USA Fan
Member since Jun 2005
65829 posts

re: GOOG & GOOGL
Just heard an analyst on CNBC talk about it... The founders own Class B shares which are controlling interest shares... They currently have Class C shares out there which are actively traded with some ownership rights... This new stock is a non controlling interest share and Google is going to use it as a means to reward employees/bonus, but not give them voting rights.


ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3845 posts

re: GOOG & GOOGL
Google types of shares....

Class A shares (was GOOG, is now GOOGL) - Has voting rights; 1 vote per share. This is what we owned yesterday. Anyone who owned a share yesterday at close of business will retain that Class A share and will also receive 1 Class C share for every Class A share they had.

Class B shares - most of these are owned by the google founders, Sergey Brin and Larry Page. These shares have 10 votes for each share. You can't buy these.

Class C shares (now GOOG) - new non-voting share. This share took the GOOG symbol and this is what Google with use primarily for employee compensation and acquisitions in the future.
This post was edited on 4/3 at 11:52 am


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Beerinthepocket
LSU Fan
Dallas
Member since May 2011
639 posts

re: GOOG & GOOGL
GOOG is better to own because it will trade at a discount to GOOGL because it has no voting rights. The voting right you get with the GOOGL shares are worthless bc the two head honchos control over 57% of the voting rights. Basically you pay extra for GOOGL shares with worthless voting rights.


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