How Elon Musk’s Twitter takeover may help change stock market rules

Politico – In a story about Elon Musk’s twitter stock purchases, Healthy Markets Executive Director Tyler Gellasch is quoted throughout the story. Of Mr. Musk’s Twitter stock purchases and the SEC’s quest to shorten the deadline for big shareholders to disclose their positions Mr. Gellasch said “Any delay whatsoever creates a huge opportunity for abuse and insider trading.” Gellasch wants the SEC to revamp ownership disclosure forms to eliminate distinctions between activist investors, who want to overhaul a company’s operations, and passive investors. Gellasch said the SEC should require heftier disclosure from everyone because an investor’s intent is irrelevant once they amass a big enough position. He also advocates cutting the disclosure window to three days, one day longer than it takes a trade to settle. “If we want to know who the people are who are big holders of these companies then why would we artificially delay it or try to dive into their minds to see why they are large holders?” (Full Story).

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