<p>Alphabet stock refers to a type of stock that is issued by a company after it has already issued its common stock. It is often used to raise additional capital or to provide a new class of shares with different rights and privileges.</p>

<h2>How It Works</h2>
<p>Alphabet stock is typically issued in series, with each series having its own unique features. These features can include:</p>
<ul>
  <li><strong>Dividend Rights:</strong> Some alphabet stocks may have the right to receive dividends, while others may not.</li>
  <li><strong>Voting Rights:</strong> Some alphabet stocks may have voting rights, while others may not. Non-voting alphabet stocks are often referred to as "non-voting preferred stock".</li>
  <li><strong>Conversion Rights:</strong> Some alphabet stocks may have the right to be converted into common stock at a specified price and time.</li>
  <li><strong>Liquidation Preference:</strong> In case of liquidation, alphabet stocks may have a priority over common stock in receiving the company's assets.</li>
</ul>

<h2>Why It Matters</h2>
<p>Alphabet stock matters to investors because it can provide a different risk-return profile compared to common stock. For instance, alphabet stocks with dividend rights can provide a steady income stream, making them attractive to income-oriented investors. However, they may have less upside potential compared to common stock, as they may not participate fully in the company's growth.</p>
<p>For example, in 2021, Apple Inc. issued a new series of alphabet stock, Apple Capital Return Preferred Stock, Series A. This stock provided a fixed dividend, but it did not have voting rights or conversion rights. This issuance allowed Apple to raise capital while offering a new class of shares to investors seeking a steady income stream.</p>