Trump Media provides additional information to investors on short selling

Trump Media is highlighting actions its shareholders can take to prevent the lending of their shares by brokerage firms for the purpose of short selling. TMTG wants to clarify that brokerage firms may facilitate short selling in DJT shares by lending DJT shareholders’ shares held in margin accounts. Through this practice, brokerage firms earn an alternative source of revenue by “lending” shares to sophisticated and institutional investors who are betting that the stock’s price will fall. Accordingly, for long-term shareholders, TMTG is highlighting actions that shareholders can take to prevent the lending of their shares: holding their DJT shares in a cash account at their brokerage firm instead of a margin account; opting out of any securities lending programs, which should stop their broker from lending their shares; moving their shares to a Direct Registration account at the company’s transfer agent. Tthis allows shareholders to safely hold shares electronically as an alternative to a brokerage account once shares are moved to a DRS account, shareholders may request to withdraw the shares into a physical stock certificate, if desired. The SEC noted the ability of brokerage firms to lend out securities in an investor’s account to a third-party at any time without notice or compensation to the account holder, if the investor had any outstanding margin loan in the account, as well as related impacts to an investor’s voting rights in the shares and tax treatment.