US Markets
Thursday, April 18th, 2024 5:07 pm EDT
Key Points
- Trump Media provides guidance to shareholders on preventing their stock from being loaned to short sellers, reflecting concerns about the decline in its stock price and interest from short sellers despite high fees associated with such trades.
- The company’s DJT stock has experienced sharp declines since its public trading debut, prompting Trump Media to offer detailed instructions on thwarting short selling activities, including holding shares in cash accounts, opting out of securities lending programs, and transferring shares to designated agents or banks.
- Short selling is highlighted as a risky practice distinct from long positions in stocks, with potential for exponential losses for short sellers if stock prices rise unexpectedly. Trump Media acknowledges brokerage firms’ role in lending shares for short sales and emphasizes the importance of providing factual information to address shareholder concerns amidst market volatility.
The recent struggles of Trump Media, particularly its plummeting stock price and interest from short sellers, have prompted the company to offer guidance to its shareholders on preventing their shares from being loaned for short selling. Amid a significant decline in its stock price since its public trading debut, Trump Media’s DJT stock has attracted the attention of short sellers despite high fees associated with such trades. The company’s share price saw a brief rise but remains substantially lower than its initial price, with consecutive days of sharp declines contributing to billions of dollars in market value losses. In response to these challenges, Trump Media has provided detailed instructions to shareholders on thwarting short selling activities, including holding shares in cash accounts, opting out of securities lending programs, and transferring shares to designated agents or banks. These instructions, including a customizable form letter for shareholders to send to their brokers, underscore the company’s efforts to address shareholder concerns and stabilize its stock performance amidst ongoing volatility. Despite limited shares available for short selling and potential risks associated with short positions, Trump Media’s proactive measures reflect its commitment to supporting long-term shareholders and addressing market challenges as it navigates through turbulent times.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/18/trump-media-tells-djt-shareholders-how-to-block-short-sellers.html
