Quite often, we see the founders of a company purchase their own company stock. For example, Joby Aviation CEO JoeBen Bevirt bought 35,000 shares of the business's stock in a transaction dated Thursday, July 21st. Why do founders purchase their own stock?

The most conventional reasoning is to signal that they believe in their company. Often such an action gives the stock value a small boost.

Such a purchase also increases the founder’s net worth.

Another reason is that their existing founder shares are likely to have restrictions. Founder’s shares are low-priced common stock issued when a startup company is incorporated. The shares are typically spread among initial parties, proportionate to their role or investment in the company. The shares are allocated at this point, but do not become vested, or owned, until a later time.

Common Shares do not have the same restrictions. Those who purchase common stock can buy/sell at any time. With the inspirational progress of a company like Joby has made in 2022, a founder purchasing stock might signal that the stock price is a bargain.