What's happened
Trump Media Group CEO, Devin Nunes, has called on Congress to investigate potential stock manipulation of the company's shares. Nunes accused market makers of engaging in 'naked' short selling, leading to a significant drop in the stock price. Ken Griffin's Citadel Securities criticized Nunes for blaming short-sellers for the stock price decline.
Why it matters
The call for an investigation into stock manipulation by the CEO of Trump Media Group is significant as it raises concerns about market integrity and investor protection. The outcome of the investigation could have implications for market regulations and the practices of market makers, potentially impacting investor confidence and the stability of financial markets.
What the papers say
Devin Nunes, the CEO of Trump Media Group, has accused market makers of engaging in 'naked' short selling, while Ken Griffin's Citadel Securities criticized Nunes for blaming short-sellers for the stock price drop. Nunes called on Congress to investigate potential stock manipulation, highlighting the need to protect shareholders. The contrasting opinions between Nunes and Citadel Securities shed light on the ongoing dispute over the reasons behind the stock price decline.
How we got here
Trump Media Group, the parent company of Truth Social, has seen its stock price plummet since going public, with Devin Nunes attributing the decline to market manipulation by short-sellers. 'Naked' short selling involves selling shares without borrowing them first, potentially distorting market supply and causing volatility. The conflict between Nunes and market makers like Citadel Securities underscores the challenges faced by companies in maintaining stock value and market integrity.
Common question
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Devin Gerald Nunes is an American Republican politician. He has served as the U.S. Representative for California's 22nd congressional district since 2003, was the chair of the United States House Permanent Select Committee on Intelligence until January 3,
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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The Nasdaq Stock Market, also known as Nasdaq or NASDAQ, is an American stock exchange located at One Liberty Plaza in New York City.
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Kenneth Cordele "Ken" Griffin is an American billionaire hedge fund manager, entrepreneur, and investor. He is the founder, chief executive, Co-Chief Investment Officer, and majority owner of the investment firm Citadel.