Differences of Alphabet Class A vs Class C

Differences of Alphabet Class A vs Class C

When people talk about investing in Alphabet, the parent company of Google, they often notice two tickers: GOOGL and GOOG. Both represent Alphabet shares, but they are not the same. The difference lies in voting rights, investor influence, and sometimes small price variations. You might be wondering: What’s the difference between Alphabet Class A vs Class C?

In this guide, we’ll explain what sets Class A and Class C apart, why Alphabet has multiple share classes, and which may suit different types of investors.

Why Alphabet Has Multiple Share Classes

Alphabet introduced a multi-class share structure to let its founders and executives keep control of the company while still raising money from public investors. By separating voting rights from economic ownership, the founders maintain decision-making power without diluting it every time new stock is issued.

This setup is common in big tech. Companies like Meta, Snap, and Airbnb also use dual-class shares to preserve founder influence. For Alphabet, the three main classes are:

• Class A (GOOGL): Publicly traded with voting rights.
• Class C (GOOG): Publicly traded with no voting rights.
• Class B: Held by insiders and founders; carries 10 votes per share but is not publicly traded.

Alphabet Class A vs Class C: Key Differences

• Voting Rights: GOOGL has one vote per share; GOOG has none.
• Ownership Influence: GOOGL lets you formally take part in governance, while GOOG doesn’t.
• Economics: Same dividends, buybacks and earnings claim
• Price: Usually very close; GOOGL can trade at a small premium for the vote
• Conversion: You cannot convert A↔C; you must sell one to buy the other
• Liquidity: Both are highly liquid

Historically, prices stay close. Occasionally, GOOGL trades at a small premium due to voting rights.

Alphabet Class A Shares (GOOGL)

Class A shares give investors one vote per share. This allows holders to participate in company matters like electing board members and approving major business decisions.

While a single retail investor may not sway outcomes, institutions often prefer Class A for the ability to have a voice. GOOGL typically trades at nearly the same price as GOOG, though sometimes a small premium develops because of the voting rights.

Alphabet Class C Shares (GOOG)

Class C shares carry no voting rights. They were created in 2014 when Alphabet split its stock to preserve control for insiders while still rewarding shareholders with more liquidity.

Because GOOG has no say in governance, these shares often trade very close to GOOGL, sometimes at a slight discount. For most investors focused purely on stock performance rather than influence, the lack of voting rights has little practical effect.

Which Should You Buy?

For most retail investors, the decision between Alphabet Class A vs Class C is less about performance, since both move almost identically, and more about whether voting rights matter to you.

• Choose GOOGL (Class A) if you want voting rights and don’t mind paying a tiny premium.
• Choose GOOG (Class C) if you just want exposure to Alphabet’s financial performance without paying extra for a vote you may never use.

Either way, both share classes give you the same economic interest in Alphabet, so long-term returns are nearly identical.

Conclusion

Alphabet’s dual share system highlights the trade-off between voting power and simplicity. Class A (GOOGL) offers a voice in company decisions, while Class C (GOOG) gives the same economic upside without the vote.

For most everyday investors, the choice often comes down to whichever share is cheaper at the time of purchase.

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