A report reveals that the CEO of Tesla and SpaceX violated federal laws by not informing the SEC about the purchase of Twitter shares .
The Securities and Exchange Commission of the United States requires that any large buyer notify a large acquisition, in this case, Elon Musk had to notify the market because his share of the social media company Twitter exceeds the 5 percent threshold , percentage That represents a profit of US$156 million , according to the Washington Post .
This is about a 50 year old law where investors are required to notify the SEC when they exceed a 5% stake in a company. According to the documents, Elon Musk reached the grade percentage on March 14 .
Musk then shocked social media when he revealed on Monday that he had acquired a 9% stake in Twitter .
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Elon Musk continued to buy shares at a price of around $39 a share , bringing his total holding to 9.2 percent . Following this revelation, Twitter ‘s stock price shot up 30% and is now above $50 per share.
The late filing netted Musk $156 million , said David Kass, a finance professor at the University of Maryland. “I really don’t know what’s going through his mind. Was he ignorant or aware that he was violating securities law?” , He said.
This is an example of flouting the law, whether intentional or not, but it highlights how billionaires circumvent federal rules and even tax rules to keep adding to their wealth.