What's Going On With Trump Media & Technology Stock On Tuesday?

Trump Media & Technology Group Corp. DJT shares are trading lower on Tuesday. The stock has been in free fall for the last month.

In an exchange filing last week, the company said it sent a letter to Nasdaq regarding suspected short-selling activity in its shares.

Related: Trump Media & Technology Group Allege Naked Short Selling, Seek Nasdaq’s Intervention

Today, the company clarified to its shareholders that brokerage firms may facilitate short selling in DJT shares by lending shareholders’ shares held in margin accounts.

Former President Donald Trump’s Trump Media & Technology Group, behind the Truth Social platform, specifically asked shareholders to hold their DJT shares in a cash account at their brokerage firm instead of a margin account.

The company has also asked shareholders to opt out of any securities lending programs, which should stop their broker from lending their shares.

In addition, Trump Media & Technology said it prefers its shareholders to move their shares to a Direct Registration account at the company’s transfer agent, Odyssey Transfer & Trust Company.

“As you know, ‘naked’ short selling – selling shares of a stock without first borrowing the shares deemed difficult to locate – is generally illegal under Securities and Exchange Commission Regulation SHO,” TMTG CEO Devin Nunes said in a letter to the Nasdaq.

The letter comes as reports show TMTG as one of the most expensive stocks to short.

“Data made available to use indicate that just four market participants have been responsible for over 60% of the extraordinary volume of DJT shares traded: Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital,” TMTG said in a filing.

Read Next: Donald Trump May Soon Receive An Additional $1.26B In DJT Shares: Key Milestone Ahead

Price Action: DJT shares are trading lower by 8.73% to $32.40 at the last check Tuesday.

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