On Tuesday, March 26, 2024, pedestrians were seen passing by the Nasdaq building in New York. The building was previously owned by Digital World but is now under the control of Trump Media, the parent company of the social media platform Truth Social. Trump Media made its official debut on the Nasdaq stock exchange.
However, things took a turn when the company suspected illegal activity that led to a decrease in the price of its shares. Trump Media CEO Devin Nunes sent a letter to Nasdaq Inc., accusing them of “naked” short selling, which involves selling shares that are not owned or borrowed, which is generally considered illegal. This is different from legitimate short selling where shares are borrowed before being sold to benefit from share value declines.
In his letter to the Securities and Exchange Commission (SEC), Nunes also mentioned that Trump Media’s shares were on a list maintained by Nasdaq indicating unlawful trading activity. Despite being worth billions of dollars, Trump Media is facing financial struggles and needs cash. Experts advise investors to be cautious when trading their stock due to the lack of fundamentals supporting its high valuation. In 2023, Trump Media reported a loss of $58 million and revenue of just $4.1 million.
Following the release of the letter, shares of Trump Media saw a slight increase on Friday. However, both Nasdaq and Trump Media have yet to respond to requests for comment on this issue. This story continues to evolve with new developments and context emerging as more information becomes available.
The incident highlights concerns about market manipulation and illegal activities in financial markets, which can have far-reaching consequences for investors and companies alike.
As such, it’s important for investors to carefully evaluate any investment opportunities they may consider before making any decisions or taking any action based on them. It’s also important for regulators like the SEC and exchanges like Nasdaq to take steps to prevent fraudulent activities like naked short selling and ensure that markets operate fairly and transparently.
In summary, while there may be some uncertainty around certain investments like those made by former President Donald Trump’s companies like Truth Social through his ownership stakes or other means through his media empire – it’s important for investors to do their research before making any decisions or taking any action based on it.
