Jeff Bezos sells $1.5 billion worth of Amazon shares, now holds stock valued at…
Amazon founder Jeff Bezos has sold another 6.6 million shares of the company, reports Barrons. According to the report, the sale was disclosed in a filing with Securities and Exchange Commission (SEC). The sold shares are valued around $1.5 billion. The transaction, as per the report, took place on July 21 and 22 – days ahead of Amazon’s second-quarter earnings scheduled for July 31. The sale was executed under the prearranged trading plan known as Rule 10b5-1.
What is 10b5-1 trading plan under which Jeff Bezos sold shares
Rule 10b5-1 is a regulation from the US SEC that lets insiders at public companies set up a plan to sell their shares ahead of time. Under this rule, major shareholders can schedule the sale of a fixed number of shares at a set time, helping them avoid accusations of insider trading. Many company executives use 10b5-1 plans for this reason. The rule was introduced to clarify Rule 10b-5, part of the Securities Exchange Act of 1934, which is the main law used to investigate securities fraud.
Jeff Bezos plans to sell more Amazon shares
As per Barrons report, the Amazon founder plans to sell more shares in the future. ‘Bezos isn’t done,’ the report says.Jeff Bezos has been on a stock selling spree recently. Earlier this month, he offloaded approximately $737 million worth of Amazon stock. He has sold around $4.8 billion worth of the company’s stocks over the past two years. Bezos still holds 4.6 million shares of Amazon, valued at $1 billion. As revealed in a regulatory filing, the former CEO plans to sell up to 25 million shares through the trading plan “intended to satisfy Rule 10b5-1(c)” that ends on May 29, 2026.Recently, Nvidia CEO Jensen Huang also sold his shares.
