Alphabet stock

Alphabet stock

Categories of common stock of a corporation associated with a particular subsidiary resulting from acquisitions and restructuring. The various alphabetical categories have different voting rights and pay dividends tied to the operating performance of the particular divisions. See also: Tracking stocks.

Alphabet Stock

A common stock with some feature distinguishing it from other common stock in the same company. Publicly-traded companies sometimes issue common shares of different classes, which usually affects the shares' voting rights. For example, class A shares usually carry more voting rights than class B shares. The name derives from the fact that these stocks usually are distinguished by different letters of the alphabet.
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Alphabet stock price dropped by 86%, Apple showed a loss of 14.
In order to illustrate the important role of asset disposition and liquidation rights in this type of equity reorganization, this section provides a comparative discussion of these ownership rights in Alphabet Stock and Targeted Stock.
Targeted Stock and Alphabet Stock differ with respect to how the proceeds from the sale of assets in the business units are allocated.
In the event of liquidation, proceeds are distributed according to the relative proportions of voting rights in the General Motors Alphabet Stock structures.
In this case, incentives of managers who hold Targeted Stock, options on Targeted Stock, or stock appreciation rights should be more closely aligned with the interests of Targeted Stock shareholders than would their Alphabet Stock counterparts.
4 On March 1, 1993, RJR Nabisco Holdings announced a plan to create an Alphabet Stock for its Nabisco Food Group.
Limitation on benefits: 50% ownership and base erosion tests; active trade or business test; prevents use of alphabet stock.