Re:Twitter says Musk’s spam analysis used tool that called h...
by thaumasiotes on Friday August 05, 2022 @07:22PM
(#32363067)
This is what I'm saying:
Once you agree to buy the company, a drop in the stock price doesn't make you any worse off. Your circumstances are exactly the same. You are worse off relative to a counterfactual scenario in which you agreed to buy the company after the stock drop instead of before. But you are no worse off after the stock drops than you were before it dropped.
And this fact is not at all compatible with shapefrog's argument. Elon Musk didn't experience a loss. There is no bag for him to hold. He will experience a loss if he cancels the deal, but that's an unrelated scenario.
In your scenario, the car buyer can immediately benefit from canceling the contract by buying a car (from some other vendor) and pocketing the $5,000 difference. No such option is available in the case of Twitter.
Once you agree to buy the company, a drop in the stock price doesn't make you any worse off. Your circumstances are exactly the same. You are worse off relative to a counterfactual scenario in which you agreed to buy the company after the stock drop instead of before. But you are no worse off after the stock drops than you were before it dropped.
And this fact is not at all compatible with shapefrog's argument. Elon Musk didn't experience a loss. There is no bag for him to hold. He will experience a loss if he cancels the deal, but that's an unrelated scenario.
In your scenario, the car buyer can immediately benefit from canceling the contract by buying a car (from some other vendor) and pocketing the $5,000 difference. No such option is available in the case of Twitter.