Alphabet is the holding company of Google and it has given the option to the people to purchase GOOG and GOOGL stock. GOOG stock belongs to class C shares while GOOGL stock belongs to class A shares. People who purchase GOOGL stock have the right to vote but this right is not given to the people who have purchased GOOG stock. The only difference between the two stocks is the voting power.If any dividend is paid by the company, then people having any of the stock will receive equal amount. According to annual report of 2018, the total number of GOOGL shares is 299 million while the total number of GOOG shares is 349 million.
Class B Stock
Class B shares are another type of stock and the number of shares in this stock is 46.9 million. These are special shares, which are given to the people inside the company. People having these shares have the right to put ten votes. Larry Page and Sergey Brin have 90% of class B shares. Along with the founders, former CEO Eric Schmidt also has class B shares.Theseclasses of shares were created in the year 2014 and the founders did this so that they have more control over the company even if they have only 50% of the stock.
Cost of GOOGL and GOOG stock
GOOGL stock allows the shareholders to give their vote as and when needed so its cost is high in comparison to GOOG shares. The price difference is very low and there are situations when the cost of GOOG shares becomes more than GOOGL shares for a temporary period.
Importance of voting
As mentioned earlier that people who purchase GOOGL stock have the right of voting but they have to think whether voting right is important or not. If an individual has only few shares, then his votes will not have any effect. People having class B shares have more voting power as they can give ten votes for each share. So people who purchase GOOGL share should not think that vote will have any effect on any issue for which voting is needed.
Choosing the stock
Right of voting is the only difference between the two stocks. All other features of both of them are same. Due to voting power, the cost of GOOGL shares is a little higher than the GOOG shares.In the case of payment of the dividend, shareholders of both stocks get equal amount. So people can buy any of the shares and they will get the equal dividend in both the cases. For more information like cash flow, you can visit https://www.webull.com/cash-flow/nasdaq-goog.