#Traders Are #Betting Millions That #TrumpMedia Will Tumble

Traders Are Betting Millions That #Trump Media Will Tumble

https://www.nytimes.com/2024/04/03/business/trump-media-short-selling.html?unlocked_article_code=1.h00.Rene.lgYOYxl6HTtU&ugrp=m

> The parent company of #TruthSocial is a popular target for #shortsellers, even after they lost $100 million last month betting on a decline in the stock that didn’t come.

#shorted #shorting #shortselling #ettd

#Trump #Media is the most “#shorted” special purpose acquisition vehicle in the country,
according to the financial data company S3 Partners.

Short-sellers bet that the price of a stock will #fall.

They do that by borrowing shares of a company and selling them into the market, hoping to buy them back later at a lower price, before returning the shares to the lender and pocketing the difference as profit.

The demand to short Trump Media, the parent company of the social media platform Truth Social, is so great that stock lenders can charge #enormous #fees,
👉making it hard for short-sellers to turn a profit unless the shares fall significantly.

💥Still, there is a lot of interest in taking the bet.💥

https://www.nytimes.com/2024/04/03/business/trump-media-short-selling.html?smid=nytcore-ios-share&referringSource=articleShare