4 ms·
I don't understand how that's not financial fraud.
by emteycz 5y ago
I don't understand how that's not financial fraud.
- runako 5y agoWhat would be fraudulent about that? Companies issue & retire shares all the time, for lots of reasons.
- emteycz 5y agoYeah but they usually don't do it with the express purpose of screwing over an investor - and when they do, there are consequences (like FB).
- runako 5y agoYou're not making a case for this being fraud. Why would this be fraud rather than a sharp-elbow business tactic? "Fraud" has a concrete meaning; for this to be a fraud, one would need to be able to identify precisely of what Musk has been defrauded.
- mypalmike 5y agoThe poison pill clause is part of the shareholder contract, often specified in the articles of incorporation.
- danieldisu 5y agoOh, if they execute the poison pill there will be consequences, just not legal ones. Trust is a big part of stock value, if you don't trust the board is time to sell...
- danso 5y agoThe poison pill is fighting off a hostile takeover, by someone who has offered a first-and-final-offer. It would be screwing the other investors to have zero negotiations for a better deal.
- antiterra 5y agoBecause fraud requires deception and there’s nothing deceptive about a poison pill that makes the news.