How Steve Jobs Blew $10.3 Billion On "The Dumbest Trade Ever"

Apple CEO Steve Jobs

Apple CEO Steve Jobs owns about $2.5 billion worth of Apple stock. But he would own about $13 billion worth of Apple stock if it weren’t for a huge mistake he made back in 2003, MarketWatch’s Brett Arends reports.

In 2003, Apple (AAPL) stock had declined from a peak $36 per share during the tech boom to about $7.

This put options granted to employees near the peak deeply underwater.

So, to keep these employees motivated, Apple’s board gave Steve Jobs and every other Apple employee the opportunity to exchange the underwater options for new, fewer options at a much lower strike price.

Steve took the leap and canceled all his options for a much smaller number of them at a lower price.

With Apple stock now trading above $250 – well above the strike price of all those options Steve gave up – Steve, with one pen stroke, lost himself about $10.3 billion in future gains.

Brett calls it, “the dumbest trade ever.”

Don’t miss: How Steve Jobs Got Sick, Got Better, And Decided To Save Some Lives

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In

apple sai-us steve jobs