3 ms·
Why should the SEC be prosecuting short sellers writing slander about TSLA any more than they should be prosecuting the people who are long on TSLA writing lite
by avar 8y ago
Why should the SEC be prosecuting short sellers writing slander about TSLA any more than they should be prosecuting the people who are long on TSLA writing literal or figurative press releases praising the company?
Both parties have an interest in the stock going one way or the other. Regulators need to get involved when something like insider manipulation of the stock happens, say when the CEO uses Twitter the way Elon Musk does.
- jsight 8y agoWhen those statements are blatantly false with a clear intent to do reputational and market damage to the business they become more than simply "short sellers writing slander". When they pay to have them promoted it looks more like fraud.
- avar 8y agoThe SEC doesn't regulate people talking shit in public, even when those people are talking shit because they have a financial interest in a public company, or even if they're paying to make their message heard. They regulate things like people talking shit in public on Twitter while having access to insider information. There's no evidence that any of these people talking shit about TSLA because they hold shorts have access to information not available through the usual market disclosure mechanisms.