AI summary
Summary of article:
If Huang Renxun leaves Huida, more attention will be paid to whether he will sell his shares like Steve Jobs; However, his stock sales are still affected by insider information regulations and judicial investigations, and it is still uncertain whether he can sell a large amount of money in the short term.
If a company’s founder is ousted, he usually sells company stock out of anger. In 1985, when Jobs was ousted from Apple, which he co-founded, he sold his stake and kept only 1 share so he could continue attending shareholder meetings.Jen-Hsun Huang go away sadHuida (Nvidia), will it also liquidate its stake?
During the 33 years that Huang Renxun led Huida, not many of Huida’s shares were sold. But the situation may change after he leaves the post.
The Financial Times reported that according to Capital IQ, Huang has sold about US$3 billion worth of shares since Faida went public in 1999. His holdings make him Huida’s largest individual shareholder, and as of the close of trading on the 12th, he still held about 812 million shares, worth about US$135 billion. Even if Huang Renxun’s shareholding is less than 5%, the sudden sale of billions of dollars worth of shares may still cause market turmoil.
However, Huang’s ability to trade stocks may be limited as he faces a lengthy judicial investigation due to his extramarital affair with a suspected Chinese spy.
Announcement documents show that Huang Renxun has not sold any shares this year. It may start selling its stake after Huida releases its financial report next Tuesday. But the lawyer said there was one condition: no inside information could be hidden.
Fred Ryder, a corporate governance expert at Harvard University, said that if Huang Jen-hsun has any insider information that has not been disclosed to the public, he is not allowed to sell his shares; He cannot sell until any information that could cause Huida’s share price to decline becomes public.
“Jensen Huang could start selling stock as soon as any undisclosed negative information comes to light that he knew about as CEO,” Fried said. “If he knew some unknown positive information, he might even sell the stock because he could not profit from it.”
Summary FAQ
-
After Jobs was ousted from Apple in 1985, he sold almost all of his Apple shares except one share, primarily to maintain his status as a shareholder so he could continue attending shareholder meetings.
-
According to Capital IQ data, Huang Renxun has sold a total of nearly US$3 billion of shares since Huida went public in 1999; By the close of trading on the 12th, he still held about 812 million shares, with a market value of about US$135 billion.
-
He must first ensure that there are no unknown insiders, otherwise he cannot sell the shares; Only if any negative or positive information that may affect the stock price is officially disclosed can he start selling his stake according to the law.
