President-elect Donald Trump reiterated on Truth Social on Friday that he has no plans to sell shares Trump Media and Technology GroupHe also called on “appropriate authorities” to investigate “market manipulators or short sellers” who company executives and shareholders previously blamed for volatility in the stock, which trades under the ticker symbol DJT. .
Shares of DJT jumped immediately after Trump's post and were up as much as 16% on Friday. The stock rose $3.15, or 11.4%, to $30.84 in early afternoon trading, partially reversing a 23% decline on Thursday that erased some of the company's gains ahead of the Nov. 5 election.
Trump, who is Trump Media's largest shareholder with a 57% stake, said the business has been the target of “possibly illegal rumors and/or statements”, alleging that he plans to sell shares in the company, which Is the master of Truth. Social platform. In September, Trump did vowed not to sell his stake After the lock-up period for Trump media insiders ended, they were allowed to sell stocks for the first time since going public in March.
Trump Media, whose DJT ticker resembles Trump's initials, has seen extreme volatility on the Nasdaq, with its shares swinging wildly on news related to the president-elect. This has led to comparisons of DJT to meme stocks, or companies that trade on social media buzz rather than financial fundamentals such as revenue and profit growth.
Trump's call for an investigation into the stock's trading highlights a potential conflict of interest between his role as the country's chief executive and his business interests, with his stake in the company valued at $3.6 billion as of Friday afternoon. As president, Trump will not only oversee several federal agencies, but also appoint the head of the U.S. Securities and Exchange Commission, the agency that regulates the securities industry.
Although there is no requirement that a president sell his financial assets upon assuming office, most American presidents have opted to hold their business stakes in a blind trust, According Brennan Center for Justice, a non-partisan law and policy institute.
A blind trust is managed by an independent trustee, and the chairman or other officer creating the trust is not allowed to advise or consult the trustee on business decisions.
During Trump's first term as President, he chose not to put his company, the Trump Organization, into a blind trust, instead hand over management Ownership of the company passed to his eldest two sons, Donald Jr. and Eric, and its longtime chief financial officer, Allen Weisselberg. (Weisselberg was released from prison (After pleading guilty in July to giving false testimony about the size of Trump's triplex apartment as part of a civil fraud trial.)
Trump's arrangement during his first administration was described as problematic by some ethics experts, including former White House chief ethics counsel Norm Eisen. Write In 2017 it failed to resolve a conflict of interest between Trump's business holdings and his role as president.
trump media stock price chart
The Trump media has attracted short sellers, or investors who want to make a profit if stocks fall. he attracted allegations Trump Media CEO Devin Nunes, a former Republican congressman, said these investors had manipulated the stock. Nunes has requested an investigation from lawmakers and the Nasdaq stock exchange, where DJT is listed.
Because of Trump's majority ownership of DJT stock, if he sold his shares “for any reason,” the stock would likely decline, S3 Partners noted on Nov. 6. research note,
In his post on Truth Social Friday, Trump said he believes in Trump Media, and denied claims that he is interested in selling shares.
“Those rumors or statements are false. I have no intention of selling!” Trump wrote. “I request that those who spread these fake rumors or statements, and who may have done so in the past, be immediately investigated by the appropriate authorities.”