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'Knowing' you will put an offer to buy a company is insider information. The assumption here is he has been acting on this information recently and it was part

'Knowing' you will put an offer to buy a company is insider information. The assumption here is he has been acting on this information recently and it was part of his plan. Unless you think he just woke up today and said: You know what, I'm going to buy Twitter! Which, I mean.. given Elon maybe that's what happened. But if it was premeditated then he has clearly been acting on insider information.

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xiphias2 5y ago
I can assure you that the CEO and the board has much more insider information than Elon.
- eatsyourtacos 5y ago
  Duh, but they are not acting on the insider information. Elon is. He bought shares, then put in an offer which drives his existing shares up. Perhaps you can argue until he sells them he isn't acting.. perhaps.. but if he sells them today, are you still telling me he isn't acting on insider information?
  - xiphias2 5y ago
    From the SEC website: Who is an insider? An “insider” is an officer, director, 10% stockholder and anyone who possesses inside information because of his or her relationship with the Company or with an officer, director or principal stockholder of the Company. A principal shareholder is a person that directly or indirectly owns or controls more than 10% of any class of voting shares or securities of a company. The principal shareholder has the authority to vote using those voting shares. Elon has less than 10% share (9.2%), so he's not an insider. Probably he stayed under 10% because of this law.
causalmodels 5y ago
I'm sorry, but in what world does having a plan constitute insider information?
ahtihn 5y ago
> 'Knowing' you will put an offer to buy a company is insider information No it's not.
- eatsyourtacos 5y ago
  Step 1: You plan to put an offer in on a company, which you know will drive up the share price Step 2: You buy shares in the company Step 3: You publicly disclose you will buy the company, driving it's share price up Step 4: You sell those existing shares now that the price has gone up. That is trading on insider information.
  - renewiltord 5y ago
    If you have no intention to actually follow through and it's a false promise, that's a pump-and-dump. It's securities fraud, but it's not insider trading. If you have an intention to actually buy and make a good faith effort and fail, that's just business.
    - eatsyourtacos 5y ago
      Market manipulation is what I meant instead of insider trading. My point was: illegal.
      - tacitusarc 5y ago
        Depends on intentions. The fact that he hired Morgan Stanley to facilitate the privatization process indicates genuine intent.
      - thehappypm 5y ago
        Ehhh any large play could be considered market manipulation. JetBlue recently offered to buy Spirit, but there’s no 2000+ comment thread on that.
  - l33t2328 5y ago
    Insider information isn’t information that only exists in your mind.

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xiphias2 5y ago

I can assure you that the CEO and the board has much more insider information than Elon.

eatsyourtacos 5y ago
Duh, but they are not acting on the insider information. Elon is. He bought shares, then put in an offer which drives his existing shares up. Perhaps you can argue until he sells them he isn't acting.. perhaps.. but if he sells them today, are you still telling me he isn't acting on insider information?
- xiphias2 5y ago
  From the SEC website: Who is an insider? An “insider” is an officer, director, 10% stockholder and anyone who possesses inside information because of his or her relationship with the Company or with an officer, director or principal stockholder of the Company. A principal shareholder is a person that directly or indirectly owns or controls more than 10% of any class of voting shares or securities of a company. The principal shareholder has the authority to vote using those voting shares. Elon has less than 10% share (9.2%), so he's not an insider. Probably he stayed under 10% because of this law.

causalmodels 5y ago

I'm sorry, but in what world does having a plan constitute insider information?

ahtihn 5y ago

> 'Knowing' you will put an offer to buy a company is insider information No it's not.

eatsyourtacos 5y ago
Step 1: You plan to put an offer in on a company, which you know will drive up the share price Step 2: You buy shares in the company Step 3: You publicly disclose you will buy the company, driving it's share price up Step 4: You sell those existing shares now that the price has gone up. That is trading on insider information.
- renewiltord 5y ago
  If you have no intention to actually follow through and it's a false promise, that's a pump-and-dump. It's securities fraud, but it's not insider trading. If you have an intention to actually buy and make a good faith effort and fail, that's just business.
  - eatsyourtacos 5y ago
    Market manipulation is what I meant instead of insider trading. My point was: illegal.
    - tacitusarc 5y ago
      Depends on intentions. The fact that he hired Morgan Stanley to facilitate the privatization process indicates genuine intent.
    - thehappypm 5y ago
      Ehhh any large play could be considered market manipulation. JetBlue recently offered to buy Spirit, but there’s no 2000+ comment thread on that.
- l33t2328 5y ago
  Insider information isn’t information that only exists in your mind.