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Trump Media & Technology Group (TMTG), the media company founded by former President Donald Trump, has recently delivered a compelling statement elucidating to shareholders about the process to obstruct their digital asset, DWAC (Digital World Acquisition Corporation) or DJT (Donald J Trump) stock, from being loaned to short sellers. The primary intention behind this strategic guide is to protect the shareholders’ interests and ensure market stability by countering short selling practices that can potentially harm the stock’s market value.
Short selling refers to the tactic employed by investors who anticipate a decline in a stock’s price. In this practice, they borrow shares and sell them, hoping to buy them back at a lower price, return the borrowed shares, and pocket the difference. However, this can sometimes result in manipulation and misinformation in the market leading to financial loss for shareholders of the concerned stock.
TMTG, in their statement, explained the process of opting out or not allowing financial institutions to lend out their DJT shares to short sellers. Normally, unless investors indicate differently, brokerages have the freedom to lend investors’ shares. To combat this, TMTG encouraged its shareholders to reach out to their respective brokers and communicate their decision not to lend out their shares. This way, short sellers wouldn’t be able to borrow those shares, thereby curtailing their ability to interact negatively with the market value of the DJT stock.
The process for opting out can vary from one brokerage to another. It is usually available within the account settings on the brokerage’s trading platform. For instance, some brokerages will allow users to opt-out of having their shares loaned out via the account settings on their platform. Yet, in other cases, shareholders might have to write or call their broker directly to inform them of their decision.
TMTG, through this initiative, demystifies the complexities of stock lending and short selling, thereby empowering shareholders with the knowledge to protect their investments. This move is being perceived as part of TMTG’s effort to ensure fairness, promote transparency, and uphold the interests of its investors. This comprehensive assistance from the company is being hailed as a model for investor engagement and corporate governance.
Educating one’s self about the intricacies of stock lending and short selling is vital for all investors. As emphasized by TMTG’s announcement, it is crucial to be aware of one’s rights to opt-out and prevent their shares from being utilized for short selling practices. Through better
