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What's a scam that's so normalized that we don't even realize it's a scam anymore? (lemm.ee)
submitted 3 years ago by to c/asklemmy@lemmy.ml
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[–] 15 points 3 years ago (1 child)

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

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  • [–] 0 points 3 years ago (2 children)

    Wait what?

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  • [–] 2 points 3 years ago* (1 child)

    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).

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  • [–] 0 points 3 years ago (1 child)

    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.

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  • [–] 1 point 3 years ago* (last edited 3 years 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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  • [–] 1 point 3 years ago*

    They have 2 (3?) types of shares, and the one most people buy ($GOOG) is a class C share which comes with no voting rights and doesn’t give you a share of the company profits.

    While class A shares ($GOOGL) come with voting rights, class B shares which are held by Google’s founders and insiders get 10x voting power and so they still hold the majority vote. Class A also does not pay dividends.

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