GOOG & GOOGL | TigerDroppings.com

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Boudin
USA Fan
Lafayette
Member since Oct 2006
9191 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



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donRANDOMnumbers
New Orleans Pelicans Fan
Lafayette Rouge
Member since Nov 2006
12060 posts

re: GOOG & GOOGL


crazy. need to read more about this





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Lsut81
USA Fan
Member since Jun 2005
64192 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






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Boudin
USA Fan
Lafayette
Member since Oct 2006
9191 posts

re: GOOG & GOOGL


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





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ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3543 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
64192 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...






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ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3543 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







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Lsut81
USA Fan
Member since Jun 2005
64192 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.





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ashy larry
LSU Fan
Marcy Projects
Member since Mar 2010
3543 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
573 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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