Bezos' Divorce Could Boost Amazon's Share Price

But S&P methodology also excludes shares owned by "related individuals" of company officers and directors from its float calculation. The index provider declined to comment on whether that category would include ex-spouses, with a spokeswoman adding that the firm doesn’t typically comment on individual companies. More simply, the float could grow if either Bezos sells shares to raise cash. Because let’s face it, even Amazon can’t make divorces cheap.

And since MacKenzie Bezos didn't sign a prenup, it looks like some of the stock will likely be sold as assets are divided and taxes are paid.

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Mark Borkowski 1 year ago Contributor's comment

I have not agreed with Mr. Tyler Durden's on every occasion. This time he is right on the money and has provided the market with some very wise advice. His column, "Bezos' Divorce Could Boost Amazon's Share Price" provides good insight. It is reported that the Bezo's do not have any prenuptial agreements. An amazing transfer of wealth will take place. Some pundits today predicted that Amazon might even become a takeover target by a consortium of private equity funds. Who knows?

Index Managers will likely buy more Amazon stock and give them an opportunity to sell some other positions. Durden is correct in stating that Indexes typically use a company's available float - rather than the number of shares outstanding - to determine to weighting (this measure excludes shares owned by the company's officers). No doubt that as Index Managers load up on Amazon, they will likely sell some of their other less attractive holdings. If this happens, the S&P will likely drop. Stay tuned.