A media company that Ex-President Donald Trump co-founded passed its lockup expiration on Thursday.
Shares of Trump Media fell at the opening bell.
Trump and other insider investors will be able to sell shares as a lock-up period expires.
Yes, Trump Media stock has serious negatives. The top issue is the expected selloff when the "great unlocking" (of currently unsalable shares) occurs this Friday (Sept.
Shares of Truth Social owner Trump Media ended the day at new lows on the eve of the expiration of "lockup" restrictions, which bar company insiders like majority shareholder Donald Trump from selling their stakes. Shares fell 3.22% to close the trading day at $15.62 a share.
Trump Media's stock has been mostly trending lower since mid-July.
After getting a bump last week, shares of Trump Media and Technology Group (Nasdaq: DJT) are falling once again, nearing the lowest point since the parent company of Trump's Truth Social platform went public via a special purpose acquisition company (SPAC) merger in March.
Shares of Trump Media closed down 6.6% Tuesday, 48 hours before the end of restrictions barring its majority shareholder, Donald Trump, and other company insiders from selling their stakes. Trump on Friday said he will not sell his 114,750,000 shares of the Truth Social owner.
For all the debate about just how rich former President Donald Trump is, one thing is clear: His ownership stake in Trump Media & Technology Group makes him a billionaire.The company behind the Truth Social platform is worth more than $3.5 billion on Wall Street, and Trump owns more than half of it. So far, Trump and other insiders in the company known as TMTG have been unable to cash in because a “lock-up agreement” has prevented them from selling any of their shares since TMTG began trading publicly in March.Trump's lock-up deal looks set to expire later this week.
Trump Media breached an agreement with one of the investors that helped the company go public and must grant the sponsor a larger share of stock, a judge ruled. The blank-check firm DWAC underestimated the amount of stock that investor ARC Global should get following the merger that took Trump Media public, the judge ruled.
Shares of Donald Trump's media company fell for a second session on Tuesday ahead of the end of restrictions on share sales by the former U.S. president and other insiders.
Donald Trump registered his shares for potential sale in April, but the GOP presidential nominee said last week won't sell when lockup provision ends as early as Friday.