Google Distributes Class C Shares to Class A Shareholders

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Shareholders of Google Inc. are receiving one new share of Google Class C stock for each share of Google Class A stock owned.  The net effect is similar to a two-for-one stock split: shareholders will own twice as many shares, at roughly half the previous price.

The stock symbols will change, too.  Please read this notice which Morgan Stanley attached to shareholder accounts today:

  • Google Inc. recently announced approval of the distribution of Class C shares to its stockholders. Effective April 3, 2014 Google Class A (currently GOOG) will begin trading under a new symbol GOOGL. At that time, the newly distributed Class C shares will trade under the Class A shares’ former symbol GOOG.

  • The new Class C shares will not be reflected in your accounts until April 4, 2014. As a result, your accounts with Google holdings may reflect a reduced value on April 3, 2014.

  • Please be aware that as a result of the Google Inc. corporate action the market value of your existing Class A shares (now trading under symbol GOOGL) will appear with a reduced market value on April 3, compared to the prior day market value. Additionally, on April 4, a new trade date position with symbol GOOG will display class C shares that will represent the remainder of your holding.

The account values of Google shareholders will not be accurate today.  Then, when your new Google Class C distribution shows up in your account — tomorrow? — your account values will be back to normal.

Subscribe now to read my most recent review of Google’s stock: Cisco Enters Cloud Market the Day Before Google Slashes Cloud Prices.

 

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Crista Huff

President

Goodfellow LLC

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