Trump Media & Technology (NASDAQ:DJT) stock is falling on Monday after the Truth Social operator filed with the U.S. Securities and Exchange Commission (SEC) for a share sale.
Trump Media filed a Form S-1 with the SEC for the potential resale of shares by current stockholders. The company notes that this comes after it went public via a special purpose acquisition company (SPAC) merger with Digital World Acquisition on March 25.
According to the press release, Trump Media & Technology (TMTG) points out that it won’t see any funds from this share sale. That’s due to the stock in this sale already being owned by shareholders in the company. However, it may see funds if connected warrants are exercised.
How This Affects DJT Stock
When a secondary shareholder offer like this is announced, it often brings a drop to a company’s stock. That’s partially due to it lowering investor morale as a major investor lowers its stake in the company.
Another worry for traders is the affect this sale could have on the price of DJT stock. If the holder chooses to sell these shares for a discount, that could further pull down the price of DJT.
DJT stock is down 14.4% as of Monday morning with more than 4.4 million shares traded. That’s still below its daily average trading volume of about 6.6 million shares.
Investors looking for more of the most recent stock market stories will want to stick around!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
