Devin Nunes, CEO of Trump Media & Technology Group Corp. (DJT), has expressed his concerns over the legality of “naked” short selling practices in the company’s shares. He emphasized that it is against SEC regulations and could harm retail investors.
Trump Media is currently on Nasdaq’s “Reg SHO threshold list” due to potential illicit trading activities. Reports suggest that 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 advised shareholders on how to prevent their shares from being loaned for short interest positions following a decline in the share price since March 26 when Truth Social app was launched. The company urged Nasdaq to take action to ensure transparency, compliance, and protection of retail investors’ interests.
DJT shares are currently trading 2.21% higher at $33.93 as of the latest check on Friday.