US Markets
Friday, April 19th, 2024 2:10 pm EDT
Key Points
- Trump Media warns Nasdaq CEO of potential market manipulation through “naked” short selling, detailing instructions for shareholders to prevent loaning out DJT shares to short sellers.
- Despite recent share price rallies, DJT’s stock remains sharply lower than its debut price, leading to significant value loss for former President Donald Trump, who owns nearly 60% of Trump Media shares.
- Trump Media CEO Devin Nunes, in a letter to Friedman, highlights DJT’s appearance on Nasdaq’s ‘Reg SHO threshold list’ as indicative of unlawful trading activity, urging Nasdaq to foster transparency and compliance to protect retail investors’ interests.
Trump Media has raised concerns over potential market manipulation of its stock by “naked” short selling, warning the CEO of the Nasdaq Stock Market, Adena Friedman. In a filing with the Securities and Exchange Commission, Trump Media disclosed detailed instructions to shareholders on how to prevent their shares from being loaned out to short sellers, who profit from betting on stock price declines. Although DJT’s share price has recently rallied, it remains significantly lower than its debut price of over $70 per share in March. With former President Donald Trump owning nearly 60% of Trump Media shares, the paper value of his stake has substantially decreased since the company went public. Trump Media CEO Devin Nunes, in his letter to Friedman, did not directly accuse any party of naked short selling but highlighted DJT’s appearance on Nasdaq’s ‘Reg SHO threshold list,’ indicating potential unlawful trading activity. Nunes expressed concerns about sophisticated market participants profiting at the expense of retail investors through naked short selling, particularly noting the high premiums brokers charged short sellers for loans of DJT shares. The letter urged Nasdaq to take steps to foster transparency and compliance with regulations, including disclosing brokers’ ‘Net Short’ positions and preventing the lending of nonexistent shares. Nasdaq and the mentioned market participants have not provided immediate comments on the matter. Meanwhile, Trump faces ongoing legal challenges, including a trial in New York state court related to hush money payments made to Stormy Daniels in 2016.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/19/trump-media-alerts-nasdaq-to-potential-market-manipulation-from-short-selling.html
