Google exits $1,000 stock club after special dividend

April 3, 2014
Google logo is seen on a wall at the entrance of the Google offices in Brussels on February 5, 2014

US technology giant Google Thursday exited the rarified club of $1,000 stocks after creating a new class of shares that some say could be used to finance acquisitions.

Google granted to holders of its existing "A" and "B" class of stock one share of the new non-voting "Class C" stock for each share of the other two classes The special dividend, first announced in January and distributed late Wednesday, operates like a .

The existing group of "A" shares, which finished Wednesday's session at $1,135.10, was trading at $579.74 Thursday just after 1600 GMT under the "GOOGL" ticker.

The new class of "C" shares was trading at $579.38. Volumes were higher for the new shares, which trade under the ticker "GOOG."

The third type of Google shares, "Class B," which are not traded on the exchange, grant 10 times the voting right of each "A" share and most are held by the California company's founders, Sergey Brin and Larry Page.

Some analysts see Google's move as a sign the company plans to finance future acquisitions with a larger base of stock.

"Google's largest acquisitions have been cash-based, although the issuance of Class C stock could imply Google's readiness to use stock as M&A currency," said a note from Morgan Stanley.

The creation of the new of Google shares means the S&P 500 index now counts 501 equities because it reflects both the "A" and "C" classes of Google shares.

After the markets close on June 20, the Class A share line will be dropped from the index and the Class C shares will be the only ones tracked for Google, according to S&P Dow Jones Indices.

Explore further: Google poised to execute long-delayed stock split

Related Stories

Google poised to execute long-delayed stock split

January 30, 2014

Google is finally ready to split its stock for the first time, more than three years after co-founders Larry Page and Sergey Brin began discussing a move engineered to ensure they remain in control of the Internet's most ...

What's up with Google's plan to split its stock

April 13, 2012

(AP) -- Google Inc. has announced plans to issue a new class of stock to existing shareholders, effectively splitting shares 2 to 1. It's an unusual approach that reflects a desire by Google's founders to preserve the company's ...

Google awards $100 million to Eric Schmidt

January 24, 2011

(AP) -- Google Inc. says it has awarded $100 million worth of equity to Eric Schmidt, who is stepping aside as CEO but will stay with the company as executive chairman.

Recommended for you

China auto show highlights industry's electric ambitions

April 22, 2018

The biggest global auto show of the year showcases China's ambitions to become a leader in electric cars and the industry's multibillion-dollar scramble to roll out models that appeal to price-conscious but demanding Chinese ...

Robot designed for faster, safer uranium plant pipe cleanup

April 21, 2018

Ohio crews cleaning up a massive former Cold War-era uranium enrichment plant in Ohio plan this summer to deploy a high-tech helper: an autonomous, radiation-measuring robot that will roll through miles of large overhead ...

How social networking sites may discriminate against women

April 20, 2018

Social media and the sharing economy have created new opportunities by leveraging online networks to build trust and remove marketplace barriers. But a growing body of research suggests that old gender and racial biases persist, ...

Virtually modelling the human brain in a computer

April 19, 2018

Neurons that remain active even after the triggering stimulus has been silenced form the basis of short-term memory. The brain uses rhythmically active neurons to combine larger groups of neurons into functional units. Until ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.