Trump Media & Technology Group Intensify your claim that your company’s stocks are being traded illegally — now taking their concerns to Congressional leaders.
Trump Media CEO Devin Nunes called on Congress to conduct a “thorough and prompt investigation” into what the company claims is “illegal manipulation” of its stock. Nunes made the request in a letter. dated Tuesday and addressed to the chairs of the House Committees on the Judiciary, Financial Services, Means and Means, Oversight and Reform.
Nunes said the company’s stock appears to be being manipulated through “naked” short selling, the practice of illegally selling shares without first borrowing them. “‘Naked’ short selling is particularly problematic given that it often involves sophisticated market participants profiting at the expense of individual investors,” Trump Media’s CEO said in a statement. ” he wrote.
He said that the fact that Trump Media was listed on Nasdaq’s “Registered SHO Threshold List” (a list of securities whose trades have not been cleared by a registered clearing organization for five consecutive days) since April 2 is a sign that the company’s stock has “This indicates illegal trading activity,” he said.
A “naked” short sale is a potential reason why a security cannot be liquidated, but there are many reasons. Why stocks are listed on the Reg SHO list.
“We believe there are strong indicators of illegal manipulation of DJT stock,” Nunes wrote in a letter to Congressional leaders. “Therefore, we are conducting an investigation into DJT’s abnormal transactions to determine the scope and purpose of DJT’s abnormal transactions and whether they violate laws such as the RICO Act and tax evasion laws, so that perpetrators of illegal acts can be brought to book. We respectfully request you to start your account. “
Trump Media, which operates former President Donald Trump’s Truth Social, completed its listing on March 26 and listed on the Nasdaq under the ticker DJT. Merged with Digital World Acquisition Corp.special acquisition purpose company; or SPAC.
The firm said its research reflects trade data from the Integrated Audit Trail, Financial Industry Regulatory Authority (FINRA) data, Deposit Trust Clearing Corporation (DTCC) information, and the total number of shorted shares since February 14, including He said it should include a request for reports from DTCC member companies. Prior to DJT’s March 26 debut, it traded under the ticker symbol DWAC).
Trump Media’s stock price plummeted for weeks following the revelations. Operating losses expected to reach millions of dollars in 2023,Registered resell substantially all of the outstanding securities;and own announcements Live TV streaming platform.
Despite Trump Media’s stock price plummeting, Daily short volume is stablesuggesting that sales are coming from long sellers rather than short sellers.
Trump Media stock rose nearly 8% Wednesday afternoon, trading at $35.06 per share, giving it a market capitalization of $4.78 billion.
Based on the data that Nunes said his company obtained, Citadel Securities, Virtuamericus, G1 Execution Services, Jane Street Capital is one of only four market participants, he said.
Nunez wrote a similar letter I told Nasdaq CEO Adena Friedman last week. In response to the letter, a Citadel spokesperson said Nunes was “the proverbial loser who tries to blame the decline in stock prices on ‘naked short selling.'”
This article was first published quartz.
