The Amazon CEO has officially become the richest person in the world. His personal wealth accounts for almost $95 billion. However, most of this fortune is tied to Amazon stock.
This means that Jeff Bezos is a major shareholder in his own company and he is subject to market fluctuations. Nonetheless, once in a while Bezos can cash out some of the stocks. He needs to fill a Form 4 with the U.S. Securities and Exchange Commission to obtain a legal conversion.
This Is the First Time Bezos Cashes Out Such a Large Amount
Starting on Wednesday last week, Jeff Bezos performed several stock conversions. While this is a normal routine activity, the Amazon CEO marks a first. The entrepreneur has never cashed out more than $1 billion before.
Over the last six years, Jeff Bezos has been regularly selling stock. However, each wave of conversions has never amounted to more than 1 million-share range.
According to SEC filings, Bezos started selling Amazon stock on November 1st. The average price stayed around $1,100 for each share. The session took advantage of a recent stock increase of 8%.
As a result, Jeff Bezos’ worth has rapidly reached $90 billion. Therefore, Amazon CEO is officially the richest person in the world starting with October 27. In the past year, Bezos raced with Microsoft founder Bill Gates for this top spot.
Bezos’ Hastiness to Sell Amazon Stock May Highlight that Amazon Reached Its Peak
Irrespective of his latest two significant stake sell-outs, Jeff Bezos is still a majority shareholder in his own organization. He owns 16% of Amazon which is equal to 80 million shares. The company has its own entry in top five companies with its largest market value being in the United States.
Bezos’ decision can be seen as a common investor move that takes advantage of great company performance. On the other hand, the selloff can also underline Bezos’ suspicions that his company reached its peak. Amazon has been struggling to remain at the top of its giant industry for quite a long time. This is why experts doubt that it can hold this coveted position for long.
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