4 ms·
The movement in the market cap is 4 billion, but the actual damage done was presumably much less than that, and was just to people who bought the stock during t
by simplicio 8y ago
The movement in the market cap is 4 billion, but the actual damage done was presumably much less than that, and was just to people who bought the stock during the brief period it was artificially inflated.
In anycase, this article seems to disagree with you that the money wasn't paid out to investors:
(https://www.theverge.com/2018/9/29/17918252/elon-musk-tesla-sec-securities-fraud-lawsuit-settlement-fine-penalty https://www.theverge.com/2018/9/29/17918252/elon-musk-tesla-...)
- SatvikBeri 8y ago> In anycase, this article seems to disagree with you that the money wasn't paid out to investors: (https://www.theverge.com/2018/9/29/17918252/elon-musk-tesla-... https://www.theverge.com/2018/9/29/17918252/elon-musk-tesla-...) Didn't realize they were planning to pay that out to investors, thanks for the correction. The short-sellers also lost money due to Musk's fraud, though admittedly that's a small fraction of volume. To get an estimate of the damage done, the price went up by ~$40 share, with ~30 million shares traded. Let's assume the average buyer bought at the midpoint, so they lost $20/share. That's still $600 million transferred from people who believed Musk to people who doubted him – 15 times larger than the total fine to Musk + Tesla.