Trump Media & Technology Group Allege Naked Short Selling, Seek Nasdaq's Intervention (Update-2)
Portfolio Pulse from Nabaparna Bhattacharya
Trump Media & Technology Group Corp. (NASDAQ:DJT) has reported suspected naked short selling of its shares to Nasdaq, citing its appearance on the Reg SHO threshold list, which signals illegal trading activity. The company highlighted that such practices harm retail investors and noted that four market participants, including Citadel Securities and VIRTU Americas, are responsible for a significant volume of DJT's traded shares. Amidst a share price decline since going public, the company advised shareholders on preventing their shares from being loaned for short positions.
April 19, 2024 | 3:44 pm
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POSITIVE IMPACT
Trump Media & Technology Group Corp. reports suspected naked short selling to Nasdaq, affecting its share price and investor trust.
The news of Trump Media & Technology Group taking action against suspected illegal trading practices could boost investor confidence, leading to a short-term positive impact on DJT's stock price. The company's proactive stance and the subsequent increase in share price indicate a positive market reaction. However, ongoing concerns about the legality of trading practices involving DJT shares could introduce volatility.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100