DEFINITION of 'Alphabet Stock'

An equity share that is tied to a specific subsidiary of a corporation. It called an alphabet stock because the classification system uses letters to distinguish the stock from the parent company's stock. Alphabet stock has different voting rights from the parent company's stock. Moreover, alphabet stock typically pays a dividend that is tied to the operating performance of the particular subsidiary rather than the parent company.

BREAKING DOWN 'Alphabet Stock'

Also referred to as a special class stock. An example of an alphabet stock would be Berkshire Hathaway's class A and class B shares. Alphabet stocks typically result from acquisitions or restructuring, but a company may issue them for other reasons.

  1. Letter Of Moral Intent

    A letter to a bank from a parent company whose subsidiary is ...
  2. Parent Company

    A company that controls other companies by owning an influential ...
  3. Wholly Owned Subsidiary

    A company whose common stock is 100% owned by another company, ...
  4. Alphabet Broker

    Slang terminology for a large insurance broker that is sometimes ...
  5. Unconsolidated Subsidiary

    An unconsolidated subsidiary is treated as an investment on a ...
  6. Class B Shares

    A classification of common stock that may be accompanied by more ...
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  2. What is the difference between a subsidiary and a sister company?

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  3. How do wholly owned subsidiaries operate in the European Union?

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  4. How do spinoffs impact investors in the both the parent and subsidiary companies?

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  5. What is the difference between Class A shares and other common shares of company's ...

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