Walking by the Nasdaq building in New York on Tuesday, March 26, 2024, are pedestrians.
Digital World’s spot on the Nasdaq stock exchange is now occupied by Trump Media, the company that operates the social media network Truth Social.
The former president’s parent business, Trump Media, contacted Nasdaq Inc. on Thursday about what it believes to be illicit conduct causing its shares’ price to decline.
Devin Nunes, CEO of Trump Media (DJT), outlined what he considers to be “naked” short selling in a letter to the exchange.
Selling shares that one does not own or has not borrowed is known as naked short selling. To conceal themselves, they will then frequently attempt to purchase shares at a lower price.
In general, this technique is forbidden. Legitimate short sellers, on the other hand, borrow the shares before selling them in order to profit from drops in the value of a company’s stock.
The letter was disclosed to the public on Friday through a Securities and Exchange Commission filing.
In the letter, Nunes also mentioned that the company’s shares were listed as “indicative of unlawful trading activity” on a list kept by the Nasdaq.
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