Dragon Weekly: Why Google has GoogleAwith GoogleCWhat is stock split?

I don't know if investors who follow the international stock market have noticed that in the US stock market, the famous company Google has two stocks, one is GoogleAAnd there's also GoogleCBoth are stocks of Google Inc. Isn't it strange?Generally speaking, the same company listed on the stock exchange corresponds to only one stock. Why does Google have two stocks?

Dragon Weekly stated that this is actually because Google has2014year4Caused by monthly stock splits. After the split, Google's stock has a total of three categories:


Class A：GOOGL，AEnjoy voting rights, per shareAcorrespond to1Stock voting rights;


ClassB：BIt's two foundersLarry PageandSergeyBrinExclusive, per shareBcorrespond to10Stock voting rights, andBCan be converted into other shares,AandCCannot be converted into other shares.


ClassC：GOOGWithout voting rights.


The three types of stocks that have been split are calculated on a per share basis, so they have the same dividend distribution rights. GoogleAwith GoogleCAll transactions can proceed normally.


Dragon Weekly pointed out that stock split refers to the process of reducing the face value of each share of a company's stock while keeping the original total capital unchanged. Its main purpose is to lower the price of the company's stock. Taking Google as an example, in2014Before the stock split, Google's stock per share was1228.8After the split, the price per share of the US dollar will decrease to500More dollars.


So is stock split a good thing?Regarding this, Dragon Weekly stated that it is usually positive. Generally speaking, when the market price of a company's stock has far exceeded its face value and the market is still bullish, the company will conduct stock splits in order to attract more investors and increase the liquidity and trading volume of the stock, conveying positive information to the market.


In addition, stock split is beneficial for consolidating the control of the management or controlling shareholders over the company, reducing unnecessary business disputes, and thus better promoting the company's development.


However, it should be noted that in order for a joint-stock company to conduct a stock split, the earnings per share must meet a certain standard, and the stock split must be approved by the shareholders' meeting in accordance with the company's articles of association. After the stock split, the original total capital of the company remains unchanged, the shares owned by shareholders also remain unchanged, and the dividends and bonuses per share are the same. Therefore, theoretically speaking, the stock split has no impact on the original shareholders of the company.


Many investors often confuse stock splits with spin off listings. Dragon Weekly points out that stock splits are when a listed company splits its own stocks, with several stocks corresponding to the same company;And spin off listing refers to the parent company splitting into several subsidiaries, each of which is established to become a new listed company, issuing new shares for listing, with one stock corresponding to one company.