Why should companies care about laws if, when the way they conducted their core activity is found fraudulent, the fine is just 0.5% of their market cap?
(or ~8% of their revenues, annualized using Q2/20 as a basis)
(or ~8% of their revenues, annualized using Q2/20 as a basis)
https://twitter.com/jcoviedo6/status/1339571513914236935
8% of revenues is a fee, not a fine
(considering that it applies to the whole core business, not to just one transaction)
(considering that it applies to the whole core business, not to just one transaction)
The core problem about public companies fraud in 2020 is, IMHO:
- We need stronger regulators' actions, but
→ Stronger regulators' action would probably deflate the current stock market bubble
→ Too many people would see their holdings lose value
→ So everyone closes one eye
- We need stronger regulators' actions, but
→ Stronger regulators' action would probably deflate the current stock market bubble
→ Too many people would see their holdings lose value
→ So everyone closes one eye
• • •
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