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> Do you make him sell 95% of his shares of Amazon? That would certainly tank the stock Why would it tank the stock if the ownership of those shares was transf
by yowzadave 3y ago
> Do you make him sell 95% of his shares of Amazon? That would certainly tank the stock
Why would it tank the stock if the ownership of those shares was transferred from Bezos to a social wealth fund?
- jedberg 3y agoBecause the market is irrational and fears change. The stock dropped when he got divorced and some of the shares transferred to his ex-wife, even though he still had a controlling share. Stocks always drop when the biggest holder sells for any reason. People don’t understand the nuance they just see the headline.
- asadotzler 3y agoIf this were a real example, he'd have been selling small amounts for a long time and your concern would never come to fruition.
- yowzadave 3y agoBut in this hypothetical, Bezos was legally compelled to sell--there is no signal for the market that "maybe Bezos is losing confidence in the company."
- jedberg 3y agoLike I said, people don’t understand. When he got divorced he was legally compelled to transfer to her. Stock dropped anyway. When the CEO of Netflix had to sell because his options expired, the stock still dropped because the headline said he sold.
- kwhitefoot 3y agoWhy would it matter if it did?