Donald Trump is the majority shareholder in Trump Media and best-known user of its Truth Social app. When DJT shares fall, his net worth can take a bit hit.
Trump Media CEO Devin Nunes urged leading GOP House committee chairmen to investigate eight financial firms over concerns of potential illicit short selling of the company's shares.The company's majority shareholder by far is former President Donald Trump , the presumptive Republican presidential nominee.
A spokesperson for Clear Street declined to comment on Nunes' letter. CNBC has requested comment from the other companies named in the letter.app owner's shares by encouraging shareholders to block their stock from being used for such trades, and by asking theNaked short sellers, unlike conventional short sellers, do not first borrow a company's stock to sell for such trades, which act as bets that the share price will fall.
Much of Donald Trump's net worth is tied up in his 65% stake in Trump Media, but he is currently barred from selling the shares that are now worth more than $5 billion until September due to a provision in the merger with a shell company that took the firm public. "To assist in determining whether intra-day short sales of DJT are being approved in violation of rules, we would encourage you to seek documents and testimony from firms that facilitate short sales," Nunes wrote in the letter, which was disclosed Thursday by Trump Media in an SEC filing.Supreme Court appears skeptical of Trump’s blanket presidential immunity argument
"An appearance on the threshold list results from persistent settlement failures, and triggers ... heightened responsibilities for market participants," he wrote. "For threshold securities such as DJT, SEC guidance clearly states that the only way to establish 'reasonable grounds' for short sales is if the broker-dealer pre-borrows the securities; moreover, 'a broker-dealer may not re-apply a locate for intra-day buy to cover trades.
Nunes did not accuse those four companies of wrongdoing. But his use of their names drew a blistering reply from one of them, Citadel Securities, whose founder
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