March 13 (Reuters) - U.S. President Donald Trump's

re-election prompted a run-up in the broad stock market that has

since receded. The same has happened in a number of tiny

companies linked to the president's two eldest sons.

In the last few months, Donald Trump Jr and Eric Trump have

announced their involvement in several smaller companies ranging

from the e-commerce, drone manufacturing and financial advisory

industries.

The announcements sparked a frenzy of buying in those stocks

- generally thinly traded names with tiny market valuations and

minimal revenue - only to give back most of those gains.

Donald Jr and Eric Trump currently run the Trump

Organization, the president's real estate company. Their

association with smaller, publicly listed companies since the

election indicates their interest in leveraging that win in the

business world.

On February 24, the duo disclosed a combined 13.4% stake in

biotech firm-turned-financial advisory Dominari Holdings ( DOMH )

, which is headquartered at the Trump Tower in New York.

They were appointed to Dominari's ( DOMH ) board of advisers on February

11.

Shares doubled after the announcement, but are now down

about 6% since their appointment. More than 23 million shares in

the stock traded a day before the announcement, LSEG data

showed. By contrast, average volume in 2024 was just 13,000

shares a day, according to Reuters calculations.

The Trump Organization and Dominari Holdings ( DOMH ) did not respond

to requests for comment.

Drone maker Unusual Machines ( UMAC ) in November added Don

Jr to its advisory board, who noted in a statement the need for

America to "stop buying Chinese drones and parts." The company,

however, said in a filing last year that it was heavily

dependent on Chinese imports for products and operations.

Allan Evans, CEO of Unusual Machines ( UMAC ), told Reuters the

company was making progress on shifting its supply chain to

domestic production, estimating that Chinese imports would

account for less than 50% of the supply chain by year-end.

Shares jumped 260% on the news of Donald Jr's appointment,

but have since fallen back. They are still up about 14% since

the announcement for a market value of about $93 million.

Dominari ( DOMH ) and Unusual share another link. Dominari ( DOMH ) was an

underwriter in Unusual's IPO in 2024 and was its placement agent

when it raised about $2 million in October in a private

fundraising. Evans said Donald Jr joined the company as an

investor in that private placement. He owned 331,580 shares of

Unusual as of December, according to regulatory filings.

Dominari ( DOMH ) reported revenue of $11.6 million in the first nine

months of 2024, while Unusual posted about $3.6 million.

James Wood, CEO of short-selling researcher

Differentiated Analytics, said the companies were benefiting

from the name recognition. The firm has a short position in PSQ

Holdings ( PSQH ), which added Donald Jr to its board of

directors in December.

"The apparent purpose of these appointments is to drum up

investor hype. I thus expect the bump in the share price to be

ephemeral," Wood said.

Michael Seifert, CEO of PSQ, which owns online shopping

website PublicSquare, said Donald Jr's appointment was not due

to hype, but a natural progression in his involvement with the

company since first investing in it before it went public in

July 2023.

The company bills itself as "anti-woke," with a goal of

connecting shoppers to brands aligned with the conservative

movement. Upon Donald Jr's appointment, PSQ stock rose as much

as 270%, but has since given back most of those gains; it is up

22% since the announcement and is worth about $87 million.