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Alphabet Stock

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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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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.
Other provisions: [] Limitation on benefits: 50% ownership and base erosion tests; active trade or business test; prevents use of alphabet stock.
 
 
 
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