Ask Experts Questions for FREE Help !
Ask
    6sfulinvestor's Avatar
    6sfulinvestor Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 1, 2014, 04:26 PM
    Google stock split
    After the Google stock split happens, would you immediately sell all of your Class C shares which have no voting rights and are less favorable than Class A. And convert them to Class A shares?
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
    Expert
     
    #2

    Apr 2, 2014, 01:33 PM
    I have a bit of experience with stock in a company that had two different classes of shares like this, with one type having voting rights and the other not. The market price on the NYSE of the shares with voting rights varied from 10% - 20% over the market price for shares without voting rights, even though the earnings per share were identical and both paid the same dividends. I never realy understood why the difference was so large - it seemed like an obvious market inefficiency, and indeed when the company was bought out the buyer paid the same amount per share for both stock types. Hence the holders of non-voting shares made more money on the deal. If the same thing happens with Google then you will have to ask yourself how much premium are you willing to pay to get the Class A over the Class C shares? You may want to let it settle a bit, see how the premium for voting shares fluctuates, and then time your switch.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

What is the cost price of stock that had stock split, merger and another stock split? [ 0 Answers ]

(1) stock split 7.3839 sh to 14.7669 total cost 475.32 (2) merged total 15.0880 shr @.6611667 ration = 9.9832 total cost 475.32 sh (3) another stock split when it reach 11.0067 to 22.0134shares total cost $593.91 (4) total shares todate 74.595 share. (5) what is the cost basis of the 74.595...

DIVIDENT POLICY: what is stock divident, stock split n stock repurchase? [ 4 Answers ]

DIVIDENT POLICY: What is stock divident, stock split n stock repurchase?? Send it with appropriate notes

Stock dividend and Stock split [ 2 Answers ]

What are the diffrences between Stock Dovidend and Stock Split

Stock Split and Stock Dividend Differentiated [ 2 Answers ]

What are the differences between the accounting and securities market between the 2 methods of increasing the number of shares outstanding. The 2 methods are stock splits and stock dividends.

Stock dividend/ stock split? [ 1 Answers ]

Hi all, Let's say if my company began 1 Jan 2006 with 200,000 shares of $1 par value common stock outstanding. The stockholders equity is as follows: Stockholders equity Capital stock: Ordinary share, $1 par value, 1,000,000 shares authorized, 200,000 shares issued and


View more questions Search