Comment by wrsh07 | Hacker News Reader

Comment by wrsh07 | Hacker News Reader

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Not if your report is true

Matt Levine has talked about this, too

Edit: got distracted but here's his link: https://www.bloomberg.com/opinion/articles/2018-02-09/can-no...

Also, I hate amp

Here's the relevant bit:

> "Wait," people ask, "how is it not manipulation to short a stock and then publicly announce that the stock is bad?" I am always confused by this complaint. Just flip it around: It's not manipulation, surely, to own a stock and then publicly announce that the stock is good. That's like half of financial television. It is also a big chunk of what corporate chief executive officers -- who all own their companies' stocks -- do. It's fine to short a stock and trash the company, or buy a stock and praise the company -- as long as, in each case, you're telling the truth.

"It is also a big chunk of what corporate chief executive officers ... do". This is a small example of how most of Mr. Levine's writing is reductive to the point of being crude.

Executives are allowed to advocate for their companies. But only with information that has already been publicly disclosed. Don't believe me? How did the SEC feel about Elon Musk tweeting non-public information about his public company?

Mr. Levine is correct that this action by short sellers is legal. But that part of his analogy is wrong. He could have ended the analogy with "That's like half of financial television." However he chose to add on a point that is not applicable to the situation.

For a long time I enjoyed Mr. Levine's writings. Until I started to read his opinions on topics in which I have domain knowledge. At which point I realized his writing lack nuance and offers analogies that feel cut & dry but are anything but.

I realize this is true of many opinion writers. But Mr. Levine enjoys a great deal of notoriety for opinions that lack sophistication & rigor.

> How did the SEC feel about Elon Musk tweeting non-public information about his public company

While executives are encouraged to report market moving public information in a standard format, that's not why the SEC took issue with his tweets

His tweets about taking Tesla private at some valuation above its current stock price were completely false (eg "funding confirmed")

Once again, the requirement of truth rears its head

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