that the SEC has launched an investigation into Elon Musk’s late disclosure of his large stake in Twitter last month, a delay that allowed him to purchase more stock without alerting other Twitter shareholders to his ownership.
The SEC is reportedly probing Musk’s late submission of a public form that investors must file when they purchase more than five percent of a company’s shares. The disclosure acts as an early sign to shareholders and companies that a large investor could aim to control or exert influence over a company.
Investors who cross the threshold are required to file a form with the SEC revealing their stake within ten days. Musk’s holdings moved past the five percent threshold on March 14, which means that he should have disclosed his stake by March 24. After March 24, Musk purchased around $513 million of stock at prices between $38.20 and $40.31 per share, making him Twitter’s largest individual shareholder with a 9.2 percent stake in the company. As Twitter’s closing price was $49.97 on April 5, the day Musk disclosed his stake, he could have saved more than $143 million.that Elon Musk’s purchase of Twitter could cost him less than the $44 billion he has offered, according to the investment firm Hindenburg Research.