President-elect Donald Trump reiterated on Truth Social that he does not plan to sell shares of Trump Media & Technology Group and called for an investigation into market manipulators and short sellers who have been blamed for volatility in the stock. The stock, which trades under the ticker symbol DJT, saw a 16% jump after Trump’s post, partially offsetting a 23% decline the previous day. Trump, who is the largest shareholder with a 57% stake, has stated that the company has been the target of potentially illegal rumors about him selling shares.
Trump Media has experienced extreme volatility on Nasdaq, with its stock fluctuating based on news related to the president-elect. The company’s shares have been likened to meme stocks, which trade based on social media buzz rather than financial fundamentals. Trump’s request for an investigation raises concerns about potential conflicts of interest between his role as president and his business interests, as his stake in Trump Media is valued at $3.6 billion. As president, Trump will have oversight of government agencies and will appoint the head of the U.S. Securities and Exchange Commission.
While there is no requirement for presidents to sell their financial assets, most have chosen to place their holdings in a blind trust to avoid conflicts of interest. However, during his first term, Trump did not place the Trump Organization in a blind trust but handed over management to his sons and the chief financial officer. Some ethics experts criticized this arrangement for failing to address conflicts of interest between Trump’s business and presidential duties. Trump Media has attracted short sellers, prompting CEO Devin Nunes to accuse them of manipulating the stock and requesting investigations by lawmakers and Nasdaq.
Trump’s majority ownership of DJT stock means that a sale of his shares could negatively impact the stock price. S3 Partners noted that the stock would likely drop if Trump were to sell his shares for any reason. In his post on Truth Social, Trump reaffirmed his belief in Trump Media and denied any intention of selling shares, calling for authorities to investigate those spreading false rumors. This situation highlights the complexities of the relationship between a president’s personal finances and public responsibilities, particularly in cases where business interests intersect with government duties.
