what is alphabet stock 
an alphabet stock refers to a separate class of common stock that is tied to a specific subsidiary of a corporation more broadly it refers to shares of common stock that are distinguished in some way from other common stock of the same company it is called an alphabet stock because the classification system used to identify each class of common stock uses letters to distinguish it from the parent company s stock alphabet stock may have different voting rights from the parent company s stock understanding alphabet stockpublicly traded companies may issue alphabet stock when purchasing a business unit from another company this unit becomes a subsidiary of the acquirer and holders of the alphabet stock are only entitled to the earnings dividends and rights of the subsidiary not the entire acquirer a similar situation would be the issuance of tracking stock where a firm issues a subclass of shares on an existing subsidiary alternatively like with all stock issuance a firm may issue a new class of common stock to raise capital however this new asset class of stock may have limited voting rights allowing insiders and management to maintain control of the firm alphabet shares may be indicative of a complex capital structure companies with complex capital structures and several subsidiaries and divisions may have a combination of several different varieties of common stock classes with each share class carrying different voting rights and dividend rates special considerations