Re:Mark Zuckerberg’s Fortune Surpasses $100B
by foghornleghorn on Thursday August 06, 2020 @06:57PM
(#24076299)
You are quite naive. These people don't have to sell their stocks in order to finance something like building a house. They get massive loans using their stocks at collateral.
Re:Mark Zuckerberg’s Fortune Surpasses $100B
by breakintheweb on Thursday August 06, 2020 @07:34PM
(#24076532)
Some of Larry Ellison's emails with his financial advisor became public and talk about doing just this.
Re:Mark Zuckerberg’s Fortune Surpasses $100B
by ksec on Thursday August 06, 2020 @08:51PM
(#24076910)
It is common practice for nearly all those wealthy people relying on stocks. What I am interested in is the interest rate they get on those loans.
Re:Mark Zuckerberg’s Fortune Surpasses $100B
by foghornleghorn on Thursday August 06, 2020 @09:25PM
(#24077091)
It's actually lower than retail bank interest rates. For example, if they get a huge mortgage, usually it is at least 100 basis points lower. This is because these people are considered extremely low risk.
(In fact, selling covertly or converting stock to any financial instrument covertly -- what's called "buying a collar" -- is quite illegal and will land you in jail if caught.)