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Why Trump Media & Technology Group Shares Are Gaining Thursday
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Why Trump Media & Technology Group Shares Are Gaining Thursday
Apr 18, 2024 9:41 AM

Trump Media & Technology Group Corp. ( DJT ) shares are trading higher on Thursday.

In an exchange filing, the company explained to shareholders how to prevent shares from being loaned for a short-interest position.

Former President Donald Trump‘s Trump Media & Technology Group ( DJT ), which is behind the Truth Social platform, said it has also updated the concern to a FAQ on its website.

Check This Out: Trump Sees Net Worth Dip Below $4B After Truth Social Stock Tumbles: Could Ex-President Sell Shares Soon?

According to the filing, brokerage firms may facilitate short selling in the company’s shares by lending shareholders’ shares in margin accounts. 

Through this practice, brokerage firms may earn an alternative source of revenue by “lending” shares to sophisticated and institutional investors who are betting that the price of the particular stock will decrease over a period of time. 

“If the price of the stock in fact decreases, then the brokerage firmand the sophisticated and institutional investors will have made a profit, while the ultimate retail investor has not,” the filing read. 

The advice comes amid a decline in the share price of DJT since March 26, when the company behind the Truth Social app went public, CNBC reported.

According to Benzinga Pro, DJT stock has lost over 15% in the past month. 

Earlier this week, the company was in the headlines for completing the research and development phase of its new live TV streaming platform. The company said it will begin scaling up its own content delivery network.

Trump Media & Technology ( DJT ) said it plans to roll out new streaming content in three phases. 

Phase one includes introducing Truth Social’s content delivery network for streaming live TV, phase two will focus on releasing a stand-alone Truth Social app for phones and tablets and phase three involves releasing the app for home TV.

Recently, the company also filed for the potential issuance of up to 21.49 million shares of common stock issuable upon the exercise of warrants related to Digital World. 

In an exchange filing, the company said it provides for the offer and sale of up to 146.1 million shares of common stock from time to time by certain selling stockholders. Trump is the majority shareholder in the company.

Read Next: Donald Trump’s Long Rant On Stormy Daniels Once Derailed White House Talks With Former AT&T CEO Randall Stephenson About The Threat Of China, Book Reveals

Price Action: DJT shares are trading higher by 15% to $30.36 on the last check Thursday.

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