GOOG vs. GOOGL: Key Differences Retail Investors Should Know
November 19, 20254 min read
GOOG vs. GOOGL: Key Differences Retail Investors Should Know
Guide to differences between GOOG and GOOGL shares.
Tendrill
Understanding the Difference Between GOOG and GOOGL: What Retail Investors Should Know
Alphabet Inc., the parent company of Google, operates with a multi‑class share structure that often confuses new investors. The two most widely traded share classes are GOOG (Class C) and GOOGL (Class A). While both offer identical economic exposure to Alphabet, they differ in governance rights — a distinction that can matter depending on an investor’s priorities.
Below is a clear breakdown of how each share class works, why Alphabet uses this structure, and what it means for retail investors.
Class Structure at a Glance
Alphabet issues three primary classes of shares:
Class A (GOOGL)
One vote per share
Publicly traded
Standard for common shareholders
Class B
Ten votes per share
Held almost exclusively by founders and insiders
Not publicly traded
Ensures long‑term founder control
Class C (GOOG)
No voting rights
Publicly traded
Economically identical to Class A
This framework allows Alphabet’s leadership to retain control while still accessing public capital markets — a structure detailed in multiple investor‑education resources, such as Investopedia and a recent overview by U.S. News & World Report on Alphabet’s voting-power design (source: U.S. News).
The Key Difference: Voting Rights
The most important distinction between GOOG and GOOGL is voting power.
GOOGL (Class A) gives shareholders one vote per share, meaning investors can participate in decisions such as board elections and shareholder resolutions.
GOOG (Class C) gives no voting rights, providing economic exposure without governance influence.
Because founders hold nearly all Class B shares — each with ten votes — they maintain disproportionate control of Alphabet’s decision‑making. As a result, even large GOOGL shareholders have limited influence compared to insiders.
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Economic Behavior: Identical Performance
While voting rights differ, both GOOG and GOOGL represent the same economic interest in Alphabet:
They move nearly in lockstep in price.
They receive the same dividends, if any are paid (Alphabet currently does not issue dividends).
Both classes participate equally in stock splits and corporate actions, as highlighted in stock‑structure explanations from sources such as Investing.com.
Because Class C shares lack voting rights, they sometimes trade at a slight discount compared to Class A shares. However, the spread is usually small and often fluctuates based on market sentiment rather than fundamentals.
Why Alphabet Created Two Public Classes
Alphabet issued Class C shares in 2014 as part of a non‑economic 2‑for‑1 stock split designed to prevent dilution of founder voting control. A more recent recap of the company’s stock‑split history at Capital.com outlines how Alphabet maintains parity across all economic share classes (source: Capital.com).
This dual‑class approach allows Alphabet to:
Maintain founder leadership and long‑term strategy
Offer more shares to the public without diluting control
Use stock compensation for employees while preserving voting power
Practical Implications for Retail Investors
For most retail investors, the difference between GOOG and GOOGL has minimal impact on financial returns. However, some considerations matter depending on investment goals:
When GOOGL Might Be Preferable
If having voting rights — even limited ones — is important
If the price spread between GOOGL and GOOG is small
If you want exposure with a formal say in shareholder proposals
When GOOG Might Be Preferable
If it is trading at a notable discount to GOOGL
If voting rights hold little value to you
If long‑term total return is the only priority
Long-Term Outlook
The majority of individual investors hold GOOG since governance influence is limited regardless of class. Alphabet’s insider-dominated voting structure means that retail voting rarely shifts company policy.
Bottom Line
GOOG and GOOGL offer the same economic exposure to Alphabet, but differ in voting power. For investors who want a voice — however small — GOOGL (Class A) is the choice. For those focused purely on price and value, GOOG (Class C) often works just as well and may occasionally be cheaper.
Understanding these structural nuances helps retail investors make more informed decisions, especially when allocating capital between share classes that behave nearly identically in the market but differ in governance influence.