Alphabet's 2 Classes of Common Stock Trade About 1% Apart. Here's the One I'd Buy.
One class has a vote. Is that vote worth paying about 1% more for?
Alphabet (GOOGL -1.24%)(GOOG -1.08%) offers two classes of common shares, Class A and Class C, with the main difference being voting rights. Class A shares trade at around $335, while Class C shares are priced at about $331, resulting in a 1% difference. However, both classes have identical dividend rights and claim to Alphabet's net income.
The Class B shares, which are not publicly traded, carry 10 votes each, giving co-founders Larry Page and Sergey Brin significant control over the company. Investing in Class C shares may provide a slightly lower valuation and a third more shares for the same investment amount, but the voting advantage is minimal for most investors.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
