Trump Media Trying To Block Short Sellers
Credit: Spencer Platt / Getty Images
April 18, 2024

At present, just 5 million of the 136 million company shares are held by short-sellers, according to CNBC. But with another 21 million shares available soon, those are expected to be snapped up by a wave of short sellers.

In panic mode now, Trump Media was propped up yesterday by an influx of buying from somewhere but that can't last.

Source: CNBC

Trump Media is making a point of telling its shareholders how to prevent their stock from being loaned to short sellers — who bet the price of the shares will drop.

The short-selling-prevention tips posted Wednesday on Trump Media’s website come as its DJT stock has sharply fallen in price since it began being public trading on March 26 — and as short sellers have taken a keen interest in the owner of the Truth Social app despite relatively high fees to finance such trades.

Trump Media’s share price rose sharply on Wednesday, by more than 15%, its closing price of $26.40 was still a whopping 63% lower than the price it opened at on March 26.

And what do the geniuses at Trump Media propose?

“For long-term shareholders who believe in the Company’s future, the Company is highlighting the following actions you can take with your brokerage firm to prevent the lending of your shares for short selling,” Trump Media said in its supplement to its FAQ Wednesday.

The tips include holding DJT shares in a cash account at a brokerage firm as opposed to a margin account, “opting out of any securities lending program,” moving Trump Media shares to the company’s designated transfer agent, and transferring shares to a bank and “holding them in your retirement account.”

Yes, putting your shares of Trump Media into your retirement account, where it is harder to access in case of trouble or emergency sounds like perfectly sound investment advice.

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