On April 17, Trump Group Media and Technology to caution Securities and Stock Exchange Committee (SEC) that can be processed by the media shares in Trump (NASDAQ: DJT).
The memo, which was sent to the SEC Mark Uyeda Chairman, indicates that the short naked sale-which is an illegal and controversial practice-is responsible.
in Naked defaultShort shares are sold without the trader first review or verify that it can be borrowed.
This practice was severely reduced in 2005 SEC List of ShowWhich has become more stringent after the 2008 financial crisis. This historical regulation has created short location requirements, the most stringent reporting requirements, as well as the requirements of closing-forcing infiltrators to buy shares in the open market and close the same positions if they are not submitted.
Why is illegal naked? To one, it leads to the above lifting of the submission, which blocks settlement and clearing operations. Moreover, the naked shortcuts disrupts the natural supply dynamics and demand by putting unjustified sale pressure on stocks.
How DJT shares are claimed
the April 17 a note was sent to uyeda It is claimed that the hedging funds in the UK & Technologies, which revealed a short job of approximately six million shares in DJT shares on April 10, participated in a nude shortcut.
As evidence of these allegations, Trump has claimed that third -party sources confirmed that short interest is currently about 11 million DJ TT shares, and did not change practically 10.7 million shares on March 31.
In addition, it was noted that the media was on the Nasdak Stock Exchange Rege Show’s threshold menu For two consecutive months in 2024, indicating that more than 10,000 shares witnessed a failure to deliver.
At the time of the press, Trump was circulated by the media at $ 20.51, with 2.11 % profit on the monthly graph, and there was no clear impact from the QBE short center.
Therefore, is the DJT stocks manipulated? While it is possible, this is still very unlikely. It will be very difficult to withdraw naked default on a large scale. However, the most wise things to do are waiting for a response from SEC before making a referee.
In addition, this is not the first time that Trump blames the media practicing bad luck.
CEO (CEO) Divin Nunes I did so almost one year ago, In mid -April 2024. Although some dangerous allegations were imposed, SEC or Nasdaq Stock Exchange did not take any formal action. Nunez seems to take this somewhat good, as he was following this point late April message to Congress and June message To Nasdak CEO Adedina Friedman.
Finally, readers should notice that not all of the submission to delivery is due to the naked shortcut.
Distinctive image via Shutterstock
