My theory is that Musk personally controls a few billion in liquid cash that he uses to straw purchase large amounts when he needs to pump the stock. Then he slowly sells, not necessarily to make money, but just to refill the liquid funds necessary to pump the stock again at the right time.
It would have to be a straw purchase to avoid issues with mandatory reporting laws since he is a major stock owner. So I’m sure his personal liquid funds are kept far removed.
That’s what a straw purchase is in this context. Musk owns and controls the money, but he has 3rd parties perform the transactions to avoid the scrutiny and reporting. That allows him to cause massive swings in the stock price when he deems it necessary and prevent it from settling back to reality at $20 a share.
My theory is that Musk personally controls a few billion in liquid cash that he uses to straw purchase large amounts when he needs to pump the stock. Then he slowly sells, not necessarily to make money, but just to refill the liquid funds necessary to pump the stock again at the right time.
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It would have to be a straw purchase to avoid issues with mandatory reporting laws since he is a major stock owner. So I’m sure his personal liquid funds are kept far removed.
Aren’t those illegal? He wouldn’t break the law.
There’s always an option of sock puppet accounts.
That’s what a straw purchase is in this context. Musk owns and controls the money, but he has 3rd parties perform the transactions to avoid the scrutiny and reporting. That allows him to cause massive swings in the stock price when he deems it necessary and prevent it from settling back to reality at $20 a share.
Ah ok. I was not aware of this terminology.