Why Jeff Bezos Is Selling Amazon Stock— and What That Means for Investors

Money Rehab with Nicole Lapin

Money News Network

Self-improvement, Education, Business

4.6 • 1.7K Ratings

🗓️ 22 March 2024

⏱️ 7 minutes

🔗️ Recording | iTunes | RSS

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Summary

Jeff Bezos recently sold around $2.4 billion of Amazon stock... does he know something we don't know? Isn't that insider trading? Today Nicole explains how C-Suite executives are allowed to sell their own stock, the common misconception you should NOT fall for, and one infamous insider trading story you might not know that you know! Need a hand analyzing investments? Start here with these Money Rehab episodes: Check These Three Things Before You Invest in a Company: https://link.chtbl.com/IQU_FIoE Your Richest Investment Is Closer Than You Think: https://link.chtbl.com/ufIWt50U $ If you're ready to find your dream team, use LinkedIn Jobs. Post a job for free at: linkedin.com/mnn $ Want to level up your money moves? Check out Facet. Facet is the next generation of personalized financial planning that is making professional financial advice accessible to the masses, not just the rich. Facet will help you understand and expand your financial opportunities by providing you with a team of financial planners (with the CFP® certification you want) and a team of professionals across all the major food groups of your financial wellness: retirement planning, tax strategy, estate planning and more. To claim Facet’s offer for Money Rehabbers, go to: https://facet.com/moneyrehab

Transcript

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0:00.0	I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand.
0:07.0	It's time for some money rehab. If you're like me, you worry every single time you file your taxes that you're
0:18.7	going to accidentally break the law and therefore accidentally go to jail.
0:23.0	Today we're going to talk about actual financial crimes though and one of the most serious ones,
0:27.2	insider trading.
0:28.3	Insider trading is the buying or selling of a publicly traded company's stock by someone
0:32.2	who has private information about that stock.
0:34.9	I'll give you an example of what that would look like.
0:36.9	Say you're the CEO of a big company, let's call it the Money Rehab Company, and you tell your
0:40.9	friend that a week from today you're going to announce
0:42.8	you have become the most profitable company in the whole wide world you blew
0:47.0	invidia out of the water Warren Buffett is investing a concillion dollars in you
0:51.4	now obviously that news is going to make your stock price go up and your bestie knows that.
0:56.8	If they then buy your stock because of this not yet public information that is insider trading. An infamous example of
1:05.2	insider trading is the case of Sam Waxle, the CEO of Mclone Systems. In
1:10.3	2001, Waxle was told that the FDA would not approve Imclone's new cancer drug, and he told
1:16.2	his friends and his family about this news before it went public so that they could sell
1:20.4	their stock before the stock price dropped, which it obviously did.
1:24.1	As soon as the news dropped that the cancer drug was not approved.
1:27.6	Waxle was charged with insider trading and was sentenced to over seven years in prison.
1:32.8	Oh, and by the way, one of those friends
1:34.8	that Waxle told Martha Stewart.
	...

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