On Friday, shares of Trump Media & Technology Group Corp, also known as DJT, experienced an increase in trading. This comes after the company sent a letter to Nasdaq regarding suspected short-selling activity in its shares. In the letter, Chief Executive Devin Nunes stated that “naked” short selling, which involves selling shares without borrowing them first, is generally considered illegal under SEC regulations.
As of April 17, DJT appears on Nasdaq’s “Reg SHO threshold list,” indicating potential unlawful trading activity. The company expressed concern that sophisticated market participants were profiting at the expense of retail investors through such short selling practices. Trump Media & Technology Group highlighted that just four market participants were responsible for a significant amount of DJT shares traded, making it the most expensive U.S. stock to short.
In response to the decline in share price since the company went public, Trump Media & Technology Group provided advice to shareholders on how to prevent their shares from being loaned for short-interest positions. The company urged Nasdaq to ensure transparency and compliance by enforcing regulations and preventing the lending of shares that do not actually exist.
Despite these concerns, DJT shares are trading higher by 2.21% on the last check Friday, reaching $33.93. The company continues to monitor the situation and address issues related to short selling activities.
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