The sudden announcement gained immediate criticism from former regulators who suggested it may conflict with SEC rules for potentially market-moving statements.
Harvey Pitt, a former SEC chairman, told CNBC on Tuesday that Musk’s tweets “might consittute fraud if any of the facts he disclosed are not true” or if there was any indication that he had floated the proposal purely to boost the stock price
Only if he's announcing news, which he likely is not. The method itself makes it feel more like a muse and less like an announcement.
Well, everyone seems to be taking him seriously...
Remember when he said the will but 'baseball glove' on a bot and try to catch the fairing.
Or when he said they were gone sell flamethrowers
Ignore this twitter account at your peril
From his point of view, if he is serious about it, then it's not a false fact and it's not floated purely to boost the stock price, so why should he be afraid?
RE: Elizabeth Holmes
"This is pretty standard practice with the SEC. The regulator explains on its website that, while it works with law enforcement agencies, it's investigations lead to civil or administrative actions. It routinely penalizes brokers and traders by banning them from working in the industry or accepting outside money. "
Living in America :)...
I'm very glad that a number of countries require nothing more of public companies than timely disclosed financials.
Americans, are you happy with your country very likely having the world's most complex securities laws?
my interest being I just ordered a III on Monday. Oh joy.
Have anybody given weight that even an SEC chairman can't give a yes or no answer on application of US securities law, but uses word "might"
All this tells me is that Pitt is being appropriately careful.
Perfect example. Nicholas Cruz
..just googling and picking an article.
"Cruz is accused of gunning down students and teachers in various classrooms at the school in Parkland on February 14, in one of the deadliest mass shootings in modern US history."
Why is he accused? We all know he did it. Why not say "Cruz gunned down..."? This is after he confessed to it, after security footage was reviewed.
It only benefits him if
1. The news is false
2. He cashes out before the stock price returns to it's previous level
We can check if he is doing 2, because insider trading rules requires he announces trades in advance.
Has he announced any trades?