2018-09-05 08:34:00 Wed ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Citron Research short-sellers initiate a class-action lawsuit against Tesla and its executive chairman Elon Musk because he might have deliberately orchestrated taking Tesla private to burn investors. This lawsuit alleges that Musk might have inadvertently engaged in stock price manipulation via his premature tweet. Musk may prefer Tesla to go private such that he can steer business decisions without worrying about near-term share price gyrations.
However, taking Tesla private entails large lump-sums of equity funds from outside venture capitalists. This lawsuit sheds skeptical light on whether Musk's premature tweet on funding Tesla to go private should be subject to S.E.C. regulatory scrutiny.
Short-sellers serve as an effective alternative corporate governance mechanism that helps discipline corporate management in major business decisions. Not only do short-sellers pose a major effective threat to incumbent entrenchment and rent protection, but they can also improve stock price efficiency and information content. Short-sellers short shares at artificially high prices, wait a while for negative news about the company, and then buy back these shares at lower prices to earn short-term gains.
The Citron lawsuit against Tesla and Elon Musk represents a classic example of fraudulent stock price manipulation that proves to be detrimental to short-sellers.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-08-01 09:40:00 Tuesday ET

In American states, all of the Top 4 richest people are self-made billionaires: Bill Gates in Washington, Warren Buffett in Nebraska, Michael Bloomberg in N
2018-01-19 11:32:00 Friday ET

Most major economies grow with great synchronicity several years after the global financial crisis. These economies experience high stock market valuation,
2022-09-15 11:38:00 Thursday ET

Capital structure choices for private firms The Kauffman Firm Survey (KFS) database provides comprehensive panel data on 5,000+ American private firms fr
2018-05-29 11:40:00 Tuesday ET

America and China, the modern world's most powerful nations may stumble into a **Thucydides trap** that Harvard professor and political scientist Graham
2025-04-30 08:27:00 Wednesday ET

The multiple layers of the world cloud Internet help expand what can be made digitally viable from electric vehicles (EV) and virtual reality (VR) headsets
2018-03-25 08:39:00 Sunday ET

President Trump imposes punitive tariffs on $60 billion Chinese imports in a brand-new trade war as China hits back with retaliatory tariffs on $3 billion U