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.
2020-09-17 12:28:00 Thursday ET
Many successful business organizations develop their distinctive capabilities and unique value propositions for strategic reasons. Paul Leinwand and Cesa
2018-10-30 10:41:00 Tuesday ET
Personal finance author Ramit Sethi suggests that it is important to invest in long-term gains instead of paying attention to daily dips and trends. It
2022-04-25 10:34:00 Monday ET
Corporate ownership governance theory and practice The genesis of modern corporate governance and ownership studies traces back to the seminal work
2018-09-19 12:38:00 Wednesday ET
The Trump administration imposes 10% tariffs on $200 billion Chinese imports and expects to raise these tariffs to 25% additional duties toward the end of t
2018-05-04 06:29:00 Friday ET
Commerce Secretary Wilbur Ross suggests that 5G remains a U.S. top technology priority in light of the telecom merger proposal between Sprint and T-Mobile a
2019-08-02 17:39:00 Friday ET
The Phillips curve becomes the Phillips cloud with no inexorable trade-off between inflation and unemployment. Stanford finance professor John Cochrane disa