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Showing Original Post only (View all)Trump Media alerts Nasdaq to potential market manipulation from 'naked' short selling of DJT stock [View all]
Last edited Fri Apr 19, 2024, 01:48 PM - Edit history (1)
Source: CNBC
Published Fri, Apr 19 2024 8:51 AM EDT Updated 53 Min Ago
Trump Media has warned the CEO of the Nasdaq Stock Market of potential market manipulation of the companys stock by naked short selling of shares. The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then execute trades betting that the price of the stock will fall.
Trump Media disclosed the warning to Nasdaq CEO Adena Friedman in a filing Friday morning with the Securities and Exchange Commission. DJTs share price has rallied in recent days, but is still sharply lower than the more than $70 per share it debuted with on March 26. Former President Donald Trump owns nearly 60% of Trump Media shares. The paper value of his stake has dropped by billions of dollars since DJT began public trading last month.
Trump Media CEO Devin Nunes in his letter to Friedman did not directly accuse anyone in particular of naked short selling, which is the sale of stocks without first having borrowed such sales for that purpose.
But Nunes noted that as of Wednesday DJT appears on Nasdaqs Reg SHO threshold list, which is indicative of unlawful trading activity. This is particularly troubling given that naked short selling often entails sophisticated market participants profiting at the expense of retail investors, Nunes said.
Read more: https://www.cnbc.com/2024/04/19/trump-media-alerts-nasdaq-to-potential-market-manipulation-from-short-selling.html
Article updated.
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Trump Media has warned the Nasdaq market of 'potential market manipulation' of the company's stock by "naked" short selling of shares. The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then execute trades betting that the price of the stock will fall.
Trump Media disclosed the warning to Nasdaq CEO Adrena Friedman in a filing Friday morning with the Securities and Exchange Commission, as DJT's share price as rallied in recent days, but is still sharply lower than the more than $70 per share it debuted with on March 26. Trump Media CEO Devin Nunes, in his letter, did not directly accuse anyone in particular of naked short selling, which is the sale of stocks without first having borrowed such sales for that purpose.
But Nunes noted that as of Wednesday "DJT appears on Nasdaq's 'Reg SHO threshold list,' which is indicative of unlawful trading activity." "This is particularly troubling given that 'naked' short selling often entails sophisticated market participants profiting at the expense of retail investors," Nunes said.
Nunes, who company owns the Truth Social app, pointed to circumstantial evidence, which included DJT being in early April the most expensive stock to short in the United States, which he said would give brokers "significant financial incentive to lend non-existent shares."
Trump Media has warned the Nasdaq market of 'potential market manipulation' of the company's stock by "naked" short selling of shares.
The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then execute trades betting that the price of the stock will fall.
Trump Media CEO Devin Nunes, in his letter Thursday to Nasdaq CEO Adrena Friedman, did not directly accuse anyone in particular of naked short selling, which is the sale of stocks without first having borrowed such sales for that purpose.
But Nunes, whose company owns the Truth Social app, pointed to circumstantial evidence, which included DJT being in early April the most expensive stock to short in the United States, which he said would give brokers "significant financial incentive to lend non-existent shares."
This is breaking news. Please check back for updates.
Trump Media has warned the Nasdaq market of 'potential market manipulation' of the company's stock by "naked" short selling of shares.
The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then execute trades betting that the price of the stock will fall.
Trump Media CEO Devin Nunes, in his letter Thursday to Nasdaq CEO Adrena Friedman, did not directly accuse anyone in particular of naked short selling, which is the sale of stocks without first having borrowed such sales for that purpose.
This is breaking news. Please check back for updates.
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This is breaking news. Please check back for updates.