Short buildup refers to a situation where an individual or institution sells borrowed shares of a stock with the expectation of repurchasing them at a lower price in the future. This practice is often used by traders who believe that a stock’s price is overvalued and will decline. When a short buildup occurs, it can put downward pressure on the stock’s price, potentially leading to a decline in its value.
The head of South Korea’s financial regulatory agency has expressed uncertainty about when the current ban on stock short selling may be lifted. The ban was initially imposed in November 2022, with June 2023 initially proposed as a potential end date.
Trump Media CEO Devin Nunes has appealed to former GOP colleagues in Congress to investigate alleged illegal short selling of ‘DJT’ stock. Nunes claims there are indications of unlawful manipulation and requests an investigation into the extent, purpose, and potential violations of RICO statutes and tax evasion laws.
MarketWatch’s Brett Arends has criticized Donald Trump’s $1.1 billion stock bonus deal with Trump Media & Technology Group Corp. (DJT) as a “no-lose” situation for the former president. The deal increased Trump’s stake in the company to $3.7 billion shares. Arends pointed out that the bonus terms allow Trump to gain an additional $1.26 billion worth of DJT shares if the company meets certain performance milestones. However, DJT shares have been declining in recent weeks and reached Nasdaq for alleged short-selling activity.
