Inside the S&P 500: Multiple Share Classes

While the shift for Google’s new class C is being done now, the shift to multiple share classes for other companies in the S&P 500 (and the S&P 100, S&P 400, and S&P 600) will be done in September 2015. (yes – 2015).  This will involve several stocks and both advance planning and advance notice to market is important.

Starting on April 3rd, the S&P 500 will still have 500 companies, but there will be 501 stocks.  The “extra” stock will be Google class C with no votes and Google’s current ticker symbol GOOG. Google class A with one vote will get a new ticker, GOOGL.  The tickers are set by NASDAQ and Google.  Google class B shares which have 10 votes per share are closely held by management and don’t trade. Since the class B doesn’t trade, it is not in the S&P 500.

This article was written by David Blitzer, Chairman of the Index Committee, S&P Dow Jones Indices.

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