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I think unless the founder is liquidating en-masse it's usually a non-event. Even in the click-batey articles I read about those they always include something a
by ender341341 6y ago
I think unless the founder is liquidating en-masse it's usually a non-event. Even in the click-batey articles I read about those they always include something about how it's normal and been planned for the last year when a CEO sells their stock
- hinkley 6y agoIt's not a non-event, it's just invisible. A divestiture plan is erosion instead of a mud slide. The swing in the stock price every day is fueled by supply and demand. The stock goes up 20c because the only person selling it wants a little more than the last sale price. It goes down 20c when someone wants to sell at the last price but the only people willing to pay that much already bought their shares. And that's not even including what happens to stop and limit orders that trigger automatically when the stock swings just a little bit farther than people anticipated. Just a small shift changes the slope of the price trend, which may cause people to shift demand away from that stock. These days, when I'm mostly hands-off with my portfolio, more of my orders expire than actually trigger. Sometimes only just missing having done so. It's part of the magic thinking about the stock market. We don't often discuss it in this sort of thread, but we definitely do when people are talking about HFT and AI for stock purchases and sales. Your orders don't happen in a vacuum, and they can affect future orders.
- somethoughts 6y agoYes - that's probably the challenging part for the incoming CEO - its an invisible headwind for them. If you think about over a two decades - Gates/Paul Allen going from 50% ownership in 2000 when they both retired to 20% ownership in 2010 to 0% around when Nadella took over - it must have some impact.