Carl, are there any disclosure requirements or restrictions for insiders to short v. box? It just occurred to me that the one year Rule 144 holding period for unregistered, pre-IPO shares of AMZN has now expired so many of the insider and VC held shares should no longer be subject to that restriction. Of course, insiders (officers, directors, >5% owners) still have to report sales, but that would be after the fact now on a Form 4. Also, shares that are no longer subject to the "unregistered securities" restrictions of Rule 144 could be pledged to secure a short v. box sale without coming up with additional margin if they don't want to sell outright (beneficial if there are no disclosures or restrictions on the short). In addition, consider that insiders could have done equity swaps to access the value of their shares, defer the gains, eliminate the price risk and still maintain "ownership and voting rights". Does anyone really think Bezos, the Street smart bookseller, hasn't taken full advantage of all the tricks in his broker's bag?
Bob |
