And many traders are betting that the stock price will continue to fall further.

Shares of Trump Media have erased all their gains since they began trading under the ticker DJT last month.

The stock closed down more than 8% Monday at $37.17 after falling about 11% earlier in the day. It had traded above $79 a share on March 26, the day of its debut.

But experts say it’s hard to draw any firm conclusions about what the stock price’s movement means. That’s because so many available shares — about 12%, one of the highest ratios of any active stock listing — reflect traders’ bets that the stock will fall, said Ihor Dusaniwsky, managing director at S3 Partners, a data and predictive analytics company.

This is called short-selling.

  • venusaur@lemmy.world
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    9 months ago

    Ah, I thought he was gonna use his shares to pay off his fines, but maybe he made money another way with the IPO?

    • MrVilliam@lemmy.world
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      9 months ago

      People were publicly pointing out that the money made from that IPO was theoretical and unrealized gains that couldn’t be sold off for 6 months per SEC rules specifically because it was assumed that he would probably try. If it’s found that that’s what happened, we need to pressure the SEC to make the punishment more than just the cost of doing business. I’m tired of seeing businesses and billionaires getting fined only a couple million for stealing a couple billion.

      • the_wise_wolf@feddit.de
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        9 months ago

        I just looked it up. He has a 6 months lock-in period. CNN article

        Btw. this was not an IPO, but a reverse-merger using a SPAC. That way the company going public doesn’t have to adhere to the SEC’s strict IPO regulations.

      • pm_me_your_quackers@lemmy.ca
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        9 months ago

        Any wrongdoing is just gonna be another slap on the wrist, again. Turns out in America, billionaires hoard second chances, too; even the fake ones.