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Trump Media stock plummets as expert warns of possible securities fraud


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More fraud from Cheetolini

Trump Media stock plummets as expert warns of possible securities fraud

Former President Donald Trump's Truth Social stock continued to circle the drain Monday as financial experts warned he may have broken the law trying to prop up the price. Trump Media shares lost 8 percent Monday after losing 12 percent Friday, according to an analysis from Boston's NPR station WBUR.

After the completed merger with "blank check firm" Digital World Acquisition Corp., the stock soared to over $66 a share then fell when news broke that Truth Social lost $58 million in 2023. Trump went online on Thursday to talk up the strength of Truth Social's stock, which could be a legal problem for him, a financial expert told Newsweek.

"A false statement of 'material' information is securities fraud," Michael Klausner, Professor of Law at Stanford Law School, told Newsweek. The professor warned it could be a case of "pumping." Klausner warned this could be seen as illegal by the Securities and Exchange Commission if it's not true, and Trump could be investigated for a so-called "pump and dump" scheme, where someone deliberately hypes a stock to manipulate its price and time their own cashout.

According to WBUR, "The former president owns a majority stake in the company and his stake was valued at about $2.9 billion on Monday, down from a peak of over $6 billion after its debut on its trading debut. That's still an eyebrow-raising valuation for former president's stake considering Trump Media lost $58 million last year and had revenue of just over $4 million. Under his current agreement, Trump is not allowed to sell his shares until September, but he can seek permission from Trump Media's board to unload some of his stake earlier" — with many on the board being close associates like his son, Donald Trump Jr.

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https://www.rawstory.com/trumps-truth-social-media-2667721367/

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56 minutes ago, Mainecat said:

Trump could be investigated for a so-called "pump and dump" scheme, where someone deliberately hypes a stock to manipulate its price and time their own cashout.


According to viper this is perfectly fine. Really smart people do this.

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6 hours ago, akvanden said:


According to viper this is perfectly fine. Really smart people do this.

Well.... I thought we were pretty sure he couldn't sell for 6 months?.... So there is certainly no reason why Trump would pump it knowing full well it would come down before then.    Sure I hope he's able to unload some early and make a profit:thumb:

Finished pretty flat today and the volume is drying up.... This may not be racing down to 20 and below as fast as we expected.  No short shares available.  

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1 hour ago, ViperGTS/Z1 said:

Well.... I thought we were pretty sure he couldn't sell for 6 months?.... So there is certainly no reason why Trump would pump it knowing full well it would come down before then.

Yup, pumping his minions up until he sells it. Again, pump and dump schemes is just ‘smart business’ in your mind.

 

1 hour ago, ViperGTS/Z1 said:

Sure I hope he's able to unload some early and make a profit

Oh yeah, we all hope me makes billions on a product with only 3 million in revenue. Completely logical. 9_9

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28 minutes ago, akvanden said:

Yup, pumping his minions up until he sells it. Again, pump and dump schemes is just ‘smart business’ in your mind.

 

Oh yeah, we all hope me makes billions on a product with only 3 million in revenue. Completely logical. 9_9

Yup....Im cool with it 😎 

And he ain't pumping and dumping.... He has always promoted truth social

 

 

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1 hour ago, ViperGTS/Z1 said:

Yup....Im cool with it 😎 

And he ain't pumping and dumping.... He has always promoted truth social

 

 

Good, he can ride it to zero! 

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8 hours ago, akvanden said:

Good, he can ride it to zero! 

It ain't going anywhere near zero.. anytime soon... It's been trading in the mid teens prior to all the hype.  Only way it would ever go sub teens is if Trump loses the election. He wins election It's probably going $70 plus.... At least briefly. . like I said this is a traders dream.  Lots of people have madea ton of money already on this stock........

Those jumping in too late or getting out too late I just don't feel sorry for.   It will be a learning experience for them.

Again much of the selling volume has dried up... very limited shares to short.   There will be some sellers enjoying a nice profit, which may continue some downward pressure, But other than that, I doubt there will be huge drops like the cheerleaders on here were waving their pom poms at a few days ago.

This all revolves on what happens up and beyond the election..... Fundamentals are meaningless for this stock.  Trump wins the stock will soar ...Trump loses the stock will crash.  Pretty simple.   

 

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Yup a lot of profit taking:bc:.... Those that bought in November and December or earlier at about 15 or 16 bucks have STILL more than doubled their money in a very short period of time .....They are taking advantage of that and cashing out.... can you blame them?   

 The ones that bought after the merger are the ones who are in trouble But that's their own fault ..... I'm hoping this goes below 20 And then I might dip my feet in the water and go back to my old trading days.... We'll see. No rush

 

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1 minute ago, Deephaven said:

It's dropping.  Viper says "that's great!  GOAT"

Duh.... Why wouldn't there be sellers that have more than doubled their money in just a couple short months?   It's a cascading affect with stop loss orders being triggered.  They are just protecting their gain.... Yup ... I would like to see a return to its spot where it was trading in the mid teens.  That would  be a good entry point.... Where it used to trade rather regularly.

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1 hour ago, Deephaven said:

So it was just a big grift.  Got it.

So how was it a grift for Trump?...The ones making all the money are the traders ....are they grifters as well?:lmao:.. how you ever made it through life this far is amazing....:lol:

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38 minutes ago, ViperGTS/Z1 said:

So how was it a grift for Trump?...The ones making all the money are the traders ....are they grifters as well?:lmao:.. how you ever made it through life this far is amazing....:lol:

Grift means to acquire dishonestly.  He is using his political influence to artificially influence the value and his lemmings are eating his fraudulent bullshit right up.
 
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39 minutes ago, Deephaven said:
Grift means to acquire dishonestly.  He is using his political influence to artificially influence the value and his lemmings are eating his fraudulent bullshit right up.
 

  He isn't acquiring anything dishonestly.  He has no control over the millions and millions of shares traded every day.

If people are willing to buy it... that's on them.  The Trump® name has value:thumbsup:..... And people are willing to pay for it.   too bad you have let your TDS blind you.   

I hope it spikes big time when he is elected and he is able to sell for billions.    He deserves it after the charade trials he has been put through.      I'm rooting for him to make money any way he can.    You can call it a " grift" all you want if that makes you feel better..:lmao:

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