Naked Short Selling Concerns: Trump Media & Technology Group Takes Action to Protect Retail Investors
The shares of Trump Media & Technology Group Corp. (DJT) are experiencing an increase in trading activity on Friday, with reports suggesting that the company recently filed an exchange notification indicating that it had sent a letter to Nasdaq concerning suspected short-selling practices in its shares.
The former President Donald Trump’s Trump Media & Technology Group is currently on Nasdaq’s “Reg SHO threshold list” due to potential illicit trading activities. CEO Devin Nunes has highlighted the illegality of “naked” short selling, emphasizing that it is against SEC regulations.
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.
In response to these concerns, 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.
Nunes expressed concern that sophisticated market players may be profiting at the expense of retail investors through naked short selling.
Reports suggest that as of April 3, Trump Media was the most expensive U.S
