I know a majority of Bezos’ and Musk’s net worths are stock ownership. But they obviously would want to make actual cash. So do they just sell a bit of their stocks every year? How do they gain their ownership back then, aren’t they just decreasing their ownership of company stocks? Would they just buy more stocks then? And if so, isn’t that an endless loop of nothing? Sell your stocks to get money, but then buy the stocks back for more ownership of the company?
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Loans generally. They use their stock as collateral (sorta like a home equity loan) to get a loan. When it comes time to pay, they get another one. The bank is happy to do this because the loan is SUPER safe when you have 1000X more stock pledged against the loan than its value. The bank gets interest, the billionaire gets money and avoids taxes. Both parties win.
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