Trump’s social media company is taking an unusual approach to combat short-selling of its publicly traded stock DJT. The company behind Truth Social has given shareholders detailed instructions on how to prevent their shares from being loaned out to short sellers who profit when a stock’s price drops.
Ever since DJT started trading publicly on March 26 its price has gone down a lot as a result of short sellers that have been really interested in betting against the stock. Leftists are organizing to attack the stock’s price and Trump is fighting back.
Cut your losses short and sell DJT penny stock
— Maga Republicans are sick criminals (@Francis83730418) April 16, 2024
To help stop this, Trump Media has added a new section to its website’s FAQ. It tells shareholders exactly what they can do to make it harder for their shares to be used for short-selling.
$DJT is going down.
🇺🇸 sell short NOW
or
forever hold your 💩
Cure: 🤔 then#VoteBlueToStopTheMadness https://t.co/5S5pFS0Oha— Civil Discourse🌎🤔 equality &⚖️4all (@TLangley99) April 17, 2024
Some of the things they suggest are keeping the shares in a cash account instead of a margin account, saying no to lending programs and moving the shares to the company’s special transfer agent or into retirement accounts.
They even gave shareholders a pre-written letter they can send to their brokers telling them definitively not to lend out their shares to short sellers.
It’s clear that Trump Media is worried about the drop in DJT’s stock price and the effect short sellers might be having on the company’s value.
While true, $DJT is expensive to short. However, there is a significant queue of investors poised to sell. The accompanying video here helps explain the problems. Worth noting is that around $17.50 or so is the threshold.https://t.co/MbSKeMKGNb
— Teddy Rebooted (@TeddySupreme3K) April 17, 2024
Don’t forget former President Donald Trump owns almost 60% of Trump Media. And if certain things happen, he could end up with 36 million more shares.
By talking about short-selling directly it might seem like the company is uneasy with how the market sees DJT. But it also looks like they want to give more power to shareholders who are in it for the long haul and believe the company has a bright future.
There’s a lot of debate about short-selling and how it affects stock prices. Trump Media’s active approach is a good reminder of how complex the financial markets can be. It also shows the lengths companies might go to protect themselves and their shareholders.
