I've read online and in the literature that apparently preferred stocks don't grow as much as common stocks. That makes sense, but Goog and Googl are closely tracking each other. I suppose Goog is technically considered as "common stock" but it neither has voting rights nor dividend payments. Can someone explain this situation to me? It doesn't make any sense.
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Preferred stocks are income securities that pay an annual dividend (usually quarterly but sometimes monthly or semi-annually) unless they are fixed/floating issues. Most are issued at $25. Most have no maturity date but they are callable at the issue price five years after the date of issue hence they 'don't grow' unless it's a convertible preferred.
GOOG and GOOGL are not preferred stocks and their correlation has nothing to do with preferred stocks.
answered Jul 6, 2021 at 22:33
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Is it a hard concept to interpret Goog as basically a preferred stock? Commented Jul 7, 2021 at 14:31
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Go to any of the web sites that list all existing US preferred stocks and see if GOOGL is included in the list. It's not. What does that tell you? Commented Jul 7, 2021 at 16:44
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It tells me that you didn't read the question. I know Goog is not a preferred stock, but you can interpret it as one like I've been saying. Commented Jul 7, 2021 at 16:49
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You can interpret any planet that you see in a telescope as a star but none of them are stars. Feel free to interpret GOOGL as whatever you want but it's not a preferred stock in the real world. Commented Jul 7, 2021 at 17:14
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Well why is that? It doesn't have voting which i thought to be the main characteristic of preferred stocks. Not only that, it doesn't have any dividends either making it essentially worthless Commented Jul 7, 2021 at 19:07