Devin Nunes, CEO of Trump Media & Technology Group Corp (DJT), has expressed concern about the potential illegal short-selling activity in his company’s shares. He mentioned that “naked” short selling, which involves selling shares without borrowing them first, is generally illegal under SEC regulations. As of April 17th, DJT appears on Nasdaq’s “Reg SHO threshold list,” indicating a possible violation of these regulations.
In addition to this, Nunes expressed concern that sophisticated market participants were profiting at the expense of retail investors through such short-selling practices. He 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.
To address these concerns, DJT has provided advice to its shareholders on how to prevent their shares from being loaned for short-interest positions. The company has also urged Nasdaq to ensure transparency and compliance by enforcing regulations and preventing the lending of shares that do not actually exist. Despite these efforts, DJT shares are trading higher by 2.21% on the last check Friday, reaching $33.93.
