Trump Media & Technology Group (DJT) shares are experiencing increased trading activity on Friday, following the company’s recent filing of an exchange notification that it had sent a letter to Nasdaq regarding suspected short-selling practices. CEO Devin Nunes highlighted the illegality of “naked” short selling and emphasized that it is against SEC regulations.
Former President Donald Trump’s Trump Media & Technology Group is currently on Nasdaq’s “Reg SHO threshold list” due to potential illicit trading activities. Nunes expressed concern that sophisticated market players may be profiting at the expense of retail investors through naked short selling, which involves lending non-existent shares to investors who want to sell stocks they don’t own.
Reports suggest that as of April 3, Trump Media was the most expensive U.S. stock to short, providing brokers with a strong financial incentive to lend non-existent shares. Only four market participants were responsible for over 60% of the unusually high volume of DJT shares traded, as stated in the company’s filing.
Yesterday, Trump Media & Technology Group advised shareholders on preventing their shares from being loaned for short interest positions. This guidance follows a decline in DJT’s share price since the company launched the Truth Social app on March 26. The company is urging Nasdaq to take action to ensure transparency, compliance, and protection of retail investors’ interests.
CEO Nunes requested that Nasdaq take steps to promote transparency, including enforcing Reg SHO, requiring brokers to disclose their net short positions, and preventing the lending of non-existent shares. DJT shares are currently trading 2.21% higher at $33.93 as of the latest check on Friday.
In conclusion, Trump Media & Technology Group Corp.’s (DJT) shares have been experiencing an increase in trading activity following its recent filing regarding suspected short-selling practices in its shares by former President Donald Trump’s company. CEO Devin Nunes expressed concern about naked short selling and urged NASDAQ to take action to protect retail investors from profiting at their expense through this illegal practice while also promoting transparency and compliance with SEC regulations.