Devin Nunes Warns Against Illegal Short Sales of Trump Media Stock

normal

Dubai: Khansaa Al-Zubair
Devin Nunes, CEO of Trump Media, warned that he would do anything to protect retail investors in the company from illegal short sales of their shares. Even if this has to go to Congress or take legal action.
He confirmed in an interview conducted by Newsmax yesterday, Friday, that he would do everything possible to protect the individual investors of the company.
Nunes also criticized President Joe Biden for mentioning Trump Media’s stock price in a speech earlier this week and wondered, “Isn’t that weird?”
In his statements in Scranton, Pennsylvania, on Tuesday, Biden criticized Donald Trump, his Republican opponent in the November elections, as the company’s shares fell from their initial price of more than $70.
Biden said: “If Trump’s shares in his company, Truth Social, fall to a lower level; He will probably do better than his company under my tax plan.
Trump Media stock, which trades under the symbol DJT, rose at the end of this week but is down significantly from its peak. This leaves Trump, who is the largest shareholder in the company, with less value for his shares for his 60% stake.
Nunes’ comments confirmed his earlier theory that the decline in Trump Media shares was at least partly the result of illegal market manipulation.
Earlier, Nasdaq CEO Nunes had warned that the fall in Trump Media’s share price could be the result of short-stop selling, a trading practice in which the seller promises that the stock price will fall. and which involves the trader selling unborrowed shares. Or arrange to get a loan.
“Reports indicate that as of April 3, Trump Media stock was the most expensive U.S. stock to sell short, meaning brokers have a significant financial incentive to issue shares,” he wrote in a letter to the commission. Securities and Exchange”.
He said the company had appeared on Nasdaq’s SHO threshold list, which could indicate illegal trading behavior.
However, the Securities and Exchange Commission states on its website: However, undetected short selling is not necessarily a violation of federal securities laws unless it is used intentionally to manipulate the market. It also states: The appearance of a stock on the aforementioned list is not necessarily an indication of illegal trading activity.