Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, April 13, 2012

Article Excerpt

GOOGLE INC., $624.60, Nasdaq symbol GOOG, currently has two share classes: the class A shares, which have one vote each, and the class B shares, which have 10 votes each. Only the class A shares are listed and traded. This week, the company announced that it would create a new share class: the non-voting class C shares, which will trade on Nasdaq. Existing class A and B shareholders will receive one class C share for each share they currently hold, for an effective 2-for-1 stock split. The proposal requires the approval of shareholders voting as a single group at the company’s annual meeting on June 21, 2012. Insiders control about 92% of the class B shares, which gives them 66% of the total votes, so the plan should pass easily. This move will make the shares more liquid, and attract investors who have stayed away because the shares were too expensive. As well, the company can issue class C shares as compensation for…