Boston Scientific Corp (BSX.N: Quote, Profile, Research, Stock Buzz) Chairman and co-founder Peter Nicholas sold $29.2 million of the company's stock, or more than 4 million shares that were previously pledged to collateralize loans.
The sale came after Nicholas and John Abele, another co-founder, were forced to sell 13 million of the medical device maker's shares earlier this month following the collapse of Lehman Brothers Holdings Inc (LEHMQ.PK: Quote, Profile, Research, Stock Buzz).
Four of the six sales reported in a U.S. Securities and Exchange Commission filing on Wednesday were made to satisfy margin calls on loans. The other two sales were involuntary sales of shares previously pledged to collateralize loans.
A margin call occurs when the value of shares in an investor's portfolio falls, and he or she has to put up more cash as collateral or liquidate part of the portfolio to pay back the loan.
Some executives borrow against their portfolios to access cash without having to sell shares, while others use money borrowed against their portfolio to add to their holdings. (Reporting by Nichola Groom; Editing by Tim Dobbyn)
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