Shares of Trump Media & Technology Group (DJT) are plunging on Monday morning after an SEC filing revealed it will issue another 21.5 million shares
Yahoo Finance's Julie Hyman and Josh Lipton break down the details.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Nicholas Jacobino
Video Transcript
MADISON MILLS: In Trump, Media shares plunging after the company filed to issue millions of additional shares of stock. Yahoo Finance's Rick Newman joining us with more. Rick.
RICK NEWMAN: Hey, guys, right. So there's an SEC filing from this company. Ticker symbol DJT saying that it's going to issue another $21.5 million shares of stock. Not the best timing for that. I mean, it's way-- this stock is way below its IPO price. I think it got as high as $79. It looks like it's now down 10% or so today to around $29.
When you issue more stock, I mean, basically, people will buy the stock and money will go back to the company, but the value of the existing shares gets diluted. So this just raises further questions about whether this company, which is the parent company of Truth Social, is just a GoFundMe campaign for Donald Trump, or does it have any actual business prospects?
