Shares of Trump Media & Technology Group Corp, also known as DJT, are seeing an increase in trading on Friday. The company recently sent a letter to Nasdaq regarding suspected short-selling activity in its shares. Chief Executive Devin Nunes mentioned in the letter that “naked” short selling, which involves selling shares without borrowing them first, is generally considered illegal under SEC regulations. As of April 17, the company appears on Nasdaq’s “Reg SHO threshold list, indicating potential unlawful trading activity.
Trump Media & Technology Group expressed concern about sophisticated market participants profiting at the expense of retail investors through such short selling practices. The company 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.
In response to the decline in share price since the company went public, Trump Media & Technology Group provided advice to shareholders on how to prevent their shares from being loaned for short-interest positions. The company has urged Nasdaq to ensure transparency and compliance by enforcing regulations and preventing the lending of shares that do not actually exist.
Despite these concerns, DJT shares are trading higher by 2.21% on the last check Friday, reaching $33.93. The company continues to monitor the situation and address the issues related to short selling activities.