Buy Alphabet Stock Vs. GOOG Vs. GOOGL
Google Stock Will Become Alphabet Stock
Google is going through a company restructure and will change its name to Alphabet. Really! For investors this means that for the rest of 2015, they will be trying to figure out what stock symbol to buy and how the two stocks they can buy now will turn into Alphabet stock.
Google stock is already extremely hard to understand and unlike most other companies stock. There are two stock symbols (GOOG and GOOGL) and the only real difference is that one comes with voting rights and the other doesn't. Even though both stocks started out at the same price, investors clearly prefer GOOGL that comes with voting rights because the value of that stock is about $30 higher than GOOG without voting rights.
Will Google's Name Change Make You More Or Less Likely To Buy Its Stock?
What Google Is Saying About The Alphabet Name Change And Transition
Co-founder Larry Page is saying that this is all being done to give investors more information and add accountability to the different divisions which make up Google. Google is an interesting company in that it has many different businesses and potential businesses: a search engine, a thermostat company (Nest), a longevity company (Calico), YouTube, and many others that can be found here.
Search is their main money maker and YouTube is doing very well also. But many (most?) of the other companies within Google are not making money and may never be successful. This corporate restructuring will give more transparency to each of these divisions/companies and they will all reside under the umbrella name of Alphabet.
Do You Have An Online Broker?
To buy Alphabet stock (or any stock on a US exchange) you will need to open a broker account. It is all done online and takes no more than a half hour to open an account. There are many options including the main ones listed below. TradeKing gives you a top rated broker to go along with their low priced fees of just $4.95 per trade and they are great for investors of all levels.
1) TradeKing (offers very inexpensive $4.95 trades)
2) Scottrade ($7 fees)
3) Merrill Edge ($6.95 fees)
4) E*Trade ($9.99 fees)
5) TD Ameritrade ($9.99 fees)
How To Buy Alphabet Stock
Until the dust settles, the only way to buy Alphabet stock is to buy Google stock. That means for the rest of 2015 the two ticker symbols will be the same (GOOG & GOOGL) and that is the only way you can buy stock in Google. Nothing will change.
As the year goes on, more information and dates will be released and Alphabet will get its ticker symbol. There will most likely be many stories in the news about the Google-Alphabet transition so you will need to periodically check to see how things are progressing. On the first day that Alphabet becomes the official name of Google, current shareholders in both GOOG and GOOGL will NOT have to do anything because their shares will automatically transition into shares of Alphabet. Anyone wishing to buy Alphabet stock from that day forward will then have to buy the new ticker symbol, whatever it is.