Google’s co-founder’s cash in timing questionable?
Last month, the 32-year-old celebrity co-founders of Google each sold more than $160 million worth of their company’s stock. But does the timing at which it was done call for a re-assesment of the future prospect, if you happen to be an investor?
Of course, there’s nothing new about executives at hot tech outfits getting rich selling their stock once their companies go public. Microsoft’s Bill Gates for example, didn’t become the richest man in the world because of his take-home salary.
But nevertheless as rightly put by Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware. :-
“Any time you sell stock it is an affirmative decision that your assets are better deployed somewhere else, I just don’t think that for the top leadership of a company, large stock sales send a particularly strong message to the other shareholders. I don’t think it’s a good thing.”
Read the news HERE.
Opinion: Neither do I !!, If I have stocks in there, I would sell half of it immediately and cash the profit, and hope the remaining half would be a good risk.