On Friday, shares of Trump Media & Technology Group Corp. (DJT) are seeing a surge in trading activity. 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. CEO Devin Nunes emphasized that “naked” short selling is illegal and can be detrimental to retail investors, as it violates SEC regulations.
Former President Donald Trump’s Truth Social platform has been flagged for potential illicit trading activities by Nasdaq. As of April 3, DJT was the most expensive U.S. stock to short, giving brokers 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 issued guidance to its shareholders on how to prevent their stocks from being loaned for short interest positions following a decline in DJT’s share price since March 26 when the Truth Social app was launched. The company is urging Nasdaq to take action and ensure transparency, compliance, and protection of retail investors’ interests by enforcing Reg SHO, requiring brokers to disclose their net short positions, and preventing the lending of non-existent shares.
DJT shares are currently trading up 2.21% at $33.93 as of the latest check on Friday.
