On Friday, there was an increase in trading activity for shares of Trump Media & Technology Group Corp. (DJT) on Nasdaq. The company recently filed a notification with the exchange, stating that it had sent a letter to Nasdaq regarding suspected short-selling practices in its shares.
Devin Nunes, CEO of the company, emphasized the illegality of “naked” short selling and highlighted that it goes against SEC regulations. This is particularly concerning for Nunes as he believes sophisticated market players may be profiting at the expense of retail investors through naked short selling.
Trump Media & Technology Group is currently on Nasdaq’s “Reg SHO threshold list,” which is due to potential illicit trading activities. Reports suggest that 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, according to the company’s filing.
Yesterday, Trump Media & Technology Group advised shareholders on preventing their shares from being loaned for short interest positions. This guidance came after a decline in DJT’s share price since March 26 when the company launched its Truth Social app. The company is urging Nasdaq to take action to ensure transparency, compliance and protection of retail investors’ interests.
As of Friday afternoon, DJT shares are trading 2.21% higher at $33.93 compared to yesterday’s closing price.
In conclusion, Devin Nunes and his team at Trump Media & Technology Group are taking steps to prevent illegal activities such as naked short selling and protect retail investors’ interests on Nasdaq platform while also encouraging transparency and compliance from other brokerage firms involved in trading their stock.