6sfulinvestor Posts: 1, Reputation: 1 New Member #1 Apr 1, 2014, 04:26 PM
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 Posts: 12,132, 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.

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