Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Telsa (TSLA) 2nd quarter 2018 were released after markets closed on August 1st and contained some good news. At 12:48 PM on August 7th

image text in transcribed

The Telsa (TSLA) 2nd quarter 2018 were released after markets closed on August 1st and contained some good news. At 12:48 PM on August 7th 2018, CEO Elon Musk announced via Twitter, "Am considering taking Tesla private at $420. Funding secured." NASDAQ halted trading of TSLA later that afternoon. Over the following week, conflicting news reports indicated that a deal may not be so secure. Some suggested that his tweet might be classified somewhere between very optimistic and a bold-faced lie. The U.S. Securities and Exchange Commission appeared to agree with this suspicion as they sent subpoenas to Tesla on August 15th, 2018 regarding Elon Musk's plans to take the company private. The information above and the stock price graph below are most consistent with: Markets dominated by fear of loss Semi-strong form efficient markets CEO Musk thinks that TSLA short sellers are good Strong-form efficient markets Weak-form efficient markets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money Banking And Financial Markets

Authors: Stephen G. Cecchetti

1st Edition

0072452692, 9780072452693

More Books

Students also viewed these Finance questions