Sun 30 Sep, 2018 06:10 am
Apparently the SEC considers it market manipulation to tweet that you have a privatization offer for your stock/company, since Elon Musk tweeted this and has incurred subsequent discipline.
This invites the question if there was another way that Musk could have worded his tweet that would not have incurred discipline. E.g. if he would have written he was "seriously considering seeking privatization as a solution to short-sellers' attempts to manipulate stock price decline," would that have also incurred discipline?
If the issue is that corporate news can't include forecasts that are worded in terms of definite predictions, then won't market players just word their news more carefully to sound explicitly tentative, while in fact deploying news for the sake of influencing investor behavior?
In other words, is it really possible for the SEC to use such discipline as currently being levied against Musk to prevent market players from doing the exact same thing in a different way by choosing their wording more carefully?
And, from a more cynical perspective, is the SEC discipline of Musk effectively supporting efforts to destabilize and drive down stock prices in order to short sell?