Although its most recent quarterly balance sheet showed it had $5.8 billion in marketable securities, Google has asked the Securities and Exchange Commission to exempt it from mutual fund regulations, the Associated Press reports. That's just over 40% of its total $14.4 billion in assets in marketable securities, a threshold that the SEC sets for a company to be treated as an investment firm or mutual fund.
In addition, 8% of Google's income of $1.5 billion last year was from investments.
"Google states that it is not in the business of investing, reinvesting or trading in securities [but is an] Internet and new media business," Google told the SEC. The company said it invests only for "bona fide business purposes, [not] for short-term speculative purposes."
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.