Re: Security Analysis
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Stockholders’ equity:
Class A and Class B common stock, $0.001 par value: 9,000,000 shares authorized at December 31, 2004 and September 30, 2005, 266,917, and 290,215 shares issued and outstanding, excluding 7,605 and 4,326 shares subject to repurchase at December 31, 2004 and September 30, 2005
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GOOG doesn't have preferred stock, most companies don't. What it has is two classes of common stock, one class has more voting rights so that if the company sells more shares, the founders retain the class with all the voting rights to ensure they won't be outvoted. Ala what Hugh Hefner did with Playboy.
Preferred stock usually has rights to regular dividends, gets its money back before common in case of liquidation, and sometimes has the right to convert into common.
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