Amazon.com Inc AMZN CEO Jeff Bezos adopted a pre-arranged stock trading plan to sell 739,032 shares of the e-commerce giant in the past few days, filings with the U.S. Securities and Exchange Commission revealed.
What Happened: According to company filings, Bezos unloaded shares in tranches under the prearranged 10b5-1 trading plan, selling about $2.5 billion worth of shares in his first big sale this year, a week after the company reported earnings.
Bezos had in 2020 sold more than $10 billion worth of shares.
See Also: Why Amazon Stock Has A Lot Of Room To Go Higher
What’s A 10b5-1 Plan: Rule 10b5-1 allows company insiders to set up a predetermined plan to sell company stock in accordance with insider trading laws. The price, amount and sale dates are pre-decided.
Why It Matters: Bezos, who holds more than a 10% stake in the e-commerce giant and has accelerated his stock sales in recent years with the intention to fund Blue Origin, a spaceflight services company he founded in 2000.
See also: How to Buy Amazon Stock
Price Action: Amazon closed 1.25% lower at $3,270.54 on Wednesday.
Read Next: Amazon Continues To Outpace Google, Facebook On Ad-Revenue Growth: What You Need To Know
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