Google Inc (NASDAQ:GOOG)’s class-C shares will start trading on the Nasdaq under the symbol “GOOG” while class-A stock will trade under “GOOGL.” The search engine giant will issue a class-C share for each of class- A and class-B common stock outstanding. The new class of shares will have no voting rights, so it won’t dilute the voting power of Google co-founders Larry Page and Sergey Brin.

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Most of Google’s big-ticket acquisitions have been cash-based

The stock split has halved the share price. The S&P Dow Jones has stated that it will include both class-A and class-C shares. So, the S&P index will now have 501 rather than the usual 500 stocks. Morgan Stanley analysts Jordan Monahan and Erhan-Soyer Osman said in a research note that 92% of class-B shares are owned by co-founders Larry Page and Sergey Brin, and chairman Eric Schmidt.

The search engine giant has promised to pay class-C holders up to 5% of the the difference between the average share value of class-A and class-C shares during the first year of trading. The issuance of class-C stock allows Google Inc (NASDAQ:GOOG) to issue stock without diluting the co-founders’ voting power. Morgan Stanley said that most of the company’s big ticket acquisitions have been cash-based. But the company may now use class-C shares as mergers & acquisitions currency.

Morgan Stanley adjusts its PT for Google to $645

The research firm has adjusted its model and estimates to reflect the stock split. The analysts adjusted their model to account for favorable forex movement, which is likely to improve the EPS by 0.5% in 2014 and 0.6% in 2015. After the stock split, Morgan Stanley has adjusted its price target to $645 with an Overweight rating. The price target is equivalent to 19x 2015E EPS, 17x FCF, and 12x EBITDA.

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Morgan Stanley says YouTube is much more profitable and bigger than the market assumes, and it is undervalued within Google Inc (NASDAQ:GOOG). The research firm expects video advertising to surpass $4 billion in 2013 and $20 billion by 2020.

Class-C shares of Google Inc (NASDAQ:GOOG) ticked up 0.49% to $569.75 in pre-market trading Thursday.