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submitted 1 year ago by mastermind@lemm.ee to c/asklemmy@lemmy.ml
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[-] h3doublehockeysticks@hexbear.net 15 points 1 year ago

Google stock is literally worthless and does not represent an actual stake in the company for example

[-] Chapo0114@hexbear.net 5 points 1 year ago
[-] Autisticky@hexbear.net 5 points 1 year ago* (last edited 1 year ago)

Google's shares are divided into two types, Class A and Class C. Class A shares, traded as GOOGL, confer one vote per share as a typical stock would. Class C shares, traded as GOOG, confers no voting privileges. This dual shares system was done to raise more money selling less useful Class C shares (intended for mutual funds and the like) while keeping control of the company in the hands of those held on to Class A shares (i.e. longtime executives).

[-] Chapo0114@hexbear.net 1 points 1 year ago

Ah, thanks for the info. That's actually what I suspect is happening with the new fractional shares thing, but the brokerage is the one retaining control.

[-] h3doublehockeysticks@hexbear.net 4 points 1 year ago* (last edited 1 year ago)

It's worse than that, because a company bylaw also gives every GOOG stock a set value of a fraction of a fraction of a fraction of a cent and a binding part of their issuance is the clause that they can demand to buy them back for that price at any time. Google can drop like pocket lint and instantly buy all GOOG stock back.

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this post was submitted on 20 Aug 2023
705 points (96.8% liked)

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