If you have been looking for information on Google Stock and have ended up a little perplexed by what you have come across, you are not alone. The company that everybody associates with Google isn’t the one you’re buying shares in. The first step is understanding that distinction, and it’s easier than it sounds.
Alphabet Inc. is a publicly traded company that owns Google. When people discuss how to invest in Google stock, they’re referring to their purchase of shares in Alphabet. Products like Search, YouTube, Chrome, and Google Cloud are part of Alphabet Inc. The shares you purchase are actually Alphabet stock, and it trades under two ticker symbols on the NASDAQ, so it’s important to understand this before making any purchases.
Alphabet has been one of the top five companies by market capitalization among publicly listed companies worldwide, according to Statista (an indicator of the size and status of the company you are interested in investing in).
Quick Answer
- Google belongs to Alphabet Inc. — Alphabet is the publicly listed company that you invest in.
- The stock symbols for Alphabet are GOOGL and GOOG.
- GOOGL shares carry voting rights, while GOOG shares don’t; both represent ownership in the same company.
- The process of purchasing Alphabet stock is the same as for any other stock traded on the US exchanges, using a brokerage account.
- Some factors to consider include advertising revenue concentration, the regulatory environment, and weighting in market-cap index funds.
Alphabet’s dividend payments have not been regular, with returns coming in the form of share price appreciation.
Is Google Publicly Traded?
Google is not a publicly listed company; rather, Alphabet Inc., Google’s parent company, is listed, and investors purchase Alphabet stock to gain exposure to Google’s businesses.
Alphabet Inc. was formed through a corporate reorganization in which Google and its other businesses were consolidated into a single holding company. Alphabet has been the listed company on NASDAQ since then, rather than Google. The difference is practically important because if you search for the stock, you won’t find Google; you will find Alphabet.
There will be two ticker symbols you will see: GOOGL and GOOG. They are both equity shares of the same company, Alphabet Inc., but they are not the same, so it’s well worth understanding the difference before investing in them.
What Is the Difference Between GOOGL and GOOG?
GOOGL and GOOG are share classes of Alphabet Inc., and their major difference is their voting rights, not the underlying business they represent.
The GOOGL and GOOG differences come down to this:
- GOOGL: They are Class A Shares, which carry 1 vote per share. Shareholders who have purchased GOOGL can cast their votes at general meetings, which are held to elect the board and approve major changes to the company. This is the most common standard equity form that investors have heard of.
- GOOG: They are Class C shares with no voting power. While a GOOG shareholder shares the same revenue and profit interests as an Alphabet shareholder, they have no governance influence over the company.
A Class B share structure, with 10 votes per share, is also in place and is held by founders and insiders. These are not listed on the stock market.
In practice, the prices of GOOGL and GOOG tend to be extremely close because the market places relatively little value on the voting rights of a corporation whose insider ownership through Class B shares gives founders effective control, regardless.
For most individual investors, voting rights are of little practical importance. Neither share class is the right choice; it’s about whether you, as an investor, care about corporate governance involvement.
How Do You Buy Google Stock?
Purchasing Alphabet shares is similar to the general process for purchasing any U.S.-listed stock (via a brokerage account on a regulated exchange).
To make your purchase of Google stock easy, follow this step-by-step guide:
- Open a brokerage account. Choose a regulated trading platform that will allow you access to US equities. Make sure it is licensed in the US before you put any money in.
- Complete identity verification: You’ll present your ID and proof of address to meet the standard know-your-customer requirements.
- Transfer funds: Move the funds you want to invest. If you are not in the US, note that currency conversion fees apply.
- Search by Symbol: You can search GOOGL or GOOG (whichever share class you’ve elected to buy), or you can just search Google or Alphabet and get them both.
- Review shares info: Please refer to the latest pricing, volume, and other data before placing an order.
- Select your order type: A market order will be filled at the current price. A limit order allows you to choose your buying price.
- Place and confirm the order: Please check the total of your purchase and any charges before you place your order.
Platforms like STARTRADER offer a range of instruments and tools for investors who want to participate in technology businesses on the US Nasdaq and global equity markets in a structured approach, catering to investors of all experience levels.
What Should You Consider Before Investing in Alphabet?
There are a couple of things to go over before purchasing Alphabet stock, but not to rule them out as an investment; rather, to help you understand what you are purchasing.
- Advertising Revenue Concentration: A significant portion of the Company’s revenue is derived from digital advertising, primarily through Google Search and YouTube. Changes in advertisers’ spending patterns, competition from other platforms, or regulatory changes affecting digital advertising would materially impact the Company’s financial results.
- Regulatory environment: Alphabet is subject to ongoing regulatory reviews in multiple jurisdictions, including antitrust, privacy, and market power, and the outcomes of these reviews may affect Alphabet’s operating environment and investor confidence.
- Market capitalization weighting: Alphabet is one of the largest firms by market capitalization; therefore, it has a high weight in many index funds and ETFs. Those who already hold a wide-index product may have significant exposure to Alphabet without even realizing it.
- Considerations of diversification: Like any large-cap tech business, putting a large part of a portfolio in Alphabet means you have put a lot in one company and one sector. This is something to consider when sizing the position.
- No regular dividend: Alphabet has never paid a regular dividend. Investors who want income as well as growth should bear this in mind when evaluating.
Frequently Asked Questions
Google is owned by Alphabet Inc., whose shares are listed on NASDAQ under two ticker symbols: GOOGL (Class A) and GOOG (Class C), with the latter having no voting rights.
GOOGL carries one vote per share; GOOG carries no voting rights. The two are equal economic owners of Alphabet Inc. They are usually sold at a similar price.
Yes, if your brokerage offers access to US equity markets, and NASDAQ in particular. Most internationally regulated brokers provide this. Check access and any currency conversion fees before ordering.
Alphabet has never paid a regular dividend. In general, investors have been rewarded with capital gains rather than income distributions. Always check the current dividend policy using current financial information sources.
Through a brokerage account that allows trading in US markets. A currency conversion from your local currency to the US dollar will apply, affecting the amount you spend. Some brokers will give you the option to keep USD balances to deal with this more effectively.
Alphabet Inc. is the parent corporation of Google and its various business activities. Google is a subsidiary of Alphabet, which also includes Search, YouTube, and Google Cloud. When you purchase Alphabet stock, you are purchasing stock of Google’s parent company and not stock of a separately listed Google corporation.
Final Thoughts
Buying Google stock is actually buying Alphabet stock. Once you understand that, it’s an easy decision. GOOGL/GOOG can be purchased in a standard brokerage account, traded on NASDAQ, and bought just like any other American stock.
But before investing, a more material question is whether the details of Alphabet’s business, its revenue sources, its place in your portfolio, and even its advertising concentration and exposure to regulatory challenges, are comfortable for you.
Get those questions answered first. The mechanics of buying are the easy part.
Risk Disclaimer
This content is for educational purposes only and does not constitute investment advice. Investing in stocks involves risk, including the possible loss of capital. Past performance is not indicative of future results. Please consider your personal financial situation and consult a qualified financial professional before making investment decisions. Not investment advice.
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