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Trump Media CEO says he will do ‘whatever it takes’ to defend DJT investors from short sellers

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Nunes also called out President Joe Biden for mentioning Trump Media’s stock price in a speech earlier this week.

“Isn’t that weird?” Nunes said.

Speaking in Scranton, Pennsylvania, Biden on Tuesday made a joke about Donald Trump, his opponent in November’s Republican election, as shares of Trump Media plummeted from their debut price of more than $70.

“If Trump’s stock in Truth Social – his – his company – falls even further, he might do better under my tax plan than his,” Biden said.

Shares of Trump Media, trading under the ticker DJT, recovered toward the end of this week but have fallen sharply from their highs. This leaves Trump, the company’s largest shareholder, with less value on paper for his 60% stake.

Nunes’ Newsmax comments reinforced his previous theory that DJT’s stock decline is at least partly due to alleged illegal market manipulation.

Earlier on Friday, Nasdaq CEO Nunes warned that the drop in Trump Media’s stock price could be the result of naked short selling, a trading practice in which the seller bets that a stock will fall in price. This involves a trader who sells shares that have not been borrowed or for which no loan has been arranged.

“Reports indicate that as of April 3, 2024, DJT was ‘by far’ ‘the most expensive U.S. stock to short,’ meaning brokers have a significant financial incentive to lend non-existent shares,” Nunes wrote in a letter. with the Securities and Exchange Commission, citing CNBC.

Nunes said Trump Media has appeared on Nasdaq’s “Reg SHO Threshold List,” which could indicate illegal trading behavior.

However, the SEC notes on its website that naked short selling is not “necessarily a violation of the federal securities laws” unless it is deliberately employed to manipulate the market. It also says that a stock appearing on the Reg SHO threshold list is not necessarily a sign of illegal trading activity.

Later that day, Citadel Securities, one of the market firms mentioned in the letter, mocked Nunes, calling him a “proverbial loser trying to blame ‘naked short selling’ for his declining stock price.”

In the Newsmax interview, Nunes seemed to fire back on that statement: “If you think nothing is wrong, you say nothing is wrong. You don’t go out and actually attack me personally.”

Citadel Securities founder Ken Griffin is a major donor to Republican candidates, including Nunes, who served as the Republican House representative for California before taking the helm of Trump Media.

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