What's the difference between GOOG and GOOGL?

The primary difference between GOOG and GOOGL lies in the voting rights attached to each class of shares. Here's a breakdown of the key distinctions: 1. **Voting Rights**: - **GOOGL (Class A Shares)**: Holders of GOOGL shares have voting rights and can participate in the company's decision-making process. Each share carries one vote. - **GOOG (Class C Shares)**: GOOG shares do not come with voting rights. Holders of Class C shares do not have a say in the company's policies or elections. 2. **Shareholder Influence**: - **GOOGL Shares**: Because GOOGL shares carry voting rights, they can be considered more valuable from a governance perspective. Shareholders with voting rights can influence corporate policies and decisions, including the election of the board of directors. - **GOOG Shares**: Without voting rights, GOOG shares are less influential in the decision-making process but can still provide an ownership stake in the company. 3. **Share Price**: - **Premium for Voting Rights**: GOOGL shares often trade at a slight premium compared to GOOG shares, reflecting the value of the voting rights. - **Market Dynamics**: The price difference between the two share classes can vary based on market dynamics, investor sentiment, and the perceived value of voting rights. 4. **Investment Considerations**: - **Cost-Effectiveness**: For investors looking for a cost-effective way to invest in Alphabet, GOOG shares might be preferred due to their lower price point. However, the lack of voting rights should be considered. - **Corporate Control**: Alphabet's dual share structure allows insiders to maintain control by holding Class B shares with enhanced voting rights, while selling Class A shares (GOOGL) to the public. In summary, the choice between GOOG and GOOGL depends on whether an investor values voting rights in their investment. While GOOGL shares offer more influence over the company's direction, they also come at a potentially higher price. GOOG shares, being less influential but cheaper, may be more suitable for investors prioritizing cost over governance participation.