Former President Donald Trump recently criticized Nasdaq for halting trading in shares of his social media company, Truth Social. Trump questioned Nasdaq’s authority to halt the sale of DJT, the ticker symbol for Trump Media & Technology Group, and suggested that Nasdaq may be taking orders from the SEC. The trading halt occurred after Trump announced that he would not be selling shares in the company, causing a significant increase in the stock price. This spike triggered two five-minute trading pauses, a common occurrence in the stock market to allow for a cooling period.
The first trading halt for Trump Media’s stock, DJT, occurred at 2:26 p.m. ET and was lifted at 2:31 p.m. ET, shortly after Trump’s announcement during a press conference. The stock price surged by 25% following Trump’s statement, leading to another trading halt at 2:34 p.m. ET. Nasdaq explained that these halts were due to limit up-limit down rules, which are intended to protect investors and the public interest. Despite trading halts being routine and necessary in certain situations, Trump threatened to take action against Nasdaq and potentially move the listing to the New York Stock Exchange if the halts continued.
Trump’s remarks on Truth Social reflected his frustration with the trading halts, accusing Nasdaq and possibly the SEC of political interference in Trump Media’s operations. However, Nasdaq did not respond to CNN’s request for comment on the matter. It is important to note that trading halts are not uncommon in the stock market and are implemented to prevent excessive volatility or manipulation of stock prices. Trump’s reaction to the halts highlights the tensions between his administration and regulatory bodies, as well as his determination to challenge decisions that he perceives as unjust.
Overall, the controversy surrounding the trading halts for Trump Media’s stock sheds light on the complexities of the stock market and the regulatory framework that governs it. While Trump’s threat to hold Nasdaq and the SEC accountable for the halts may be seen as a form of intimidation, it also underscores the importance of transparency and fairness in financial markets. Moving forward, it will be interesting to see how this situation unfolds and whether any further actions will be taken by Trump or regulatory authorities. Ultimately, the incident serves as a reminder of the challenges and controversies that can arise in the realm of finance and politics.
