“Before former President Donald Trump’s social media company made its stock market debut, many investors were lining up to bet on its collapse. After the company’s share price plunged following an initial surge, the appetite to bet against the stock has grown even more ravenous,” the New York Times reports.
“Trump Media & Technology Group, which trades under the ticker DJT, slipped on Wednesday to below $50 per share, extending a steep decline this week that pulled the stock down from its high near $80 and erased more than $2 billion of market value.”
“Trump Media is the most ‘shorted’ special purpose acquisition vehicle in the country… 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.”
