Donald Trump Criticizes Nasdaq for Trading Halt
Former President Donald Trump expressed his frustration with Nasdaq regarding a trading halt in shares of his social media company and even threatened to change the listing to the New York Stock Exchange.
Trump’s Criticism
In a post on Truth Social, Trump questioned Nasdaq’s decision to halt trading of his company’s shares. He accused Nasdaq of acting on orders from the SEC and suggested that the delay in Trump Media’s merger was politically motivated.
Trading Halt Explanation
Trump Media’s stock experienced a significant increase following Trump’s announcement that he would not be selling shares in the company. This surge triggered two five-minute trading halts, a common occurrence in the stock market to stabilize volatility.
Market-Wide Mechanisms
A Nasdaq spokesperson clarified that trading pauses are SEC-mandated mechanisms aimed at protecting companies and investors from excessive volatility. These halts have been in place across all US exchanges since 2013.
Threat of Moving Listing
Despite the routine nature of the trading halts, Trump threatened to hold Nasdaq and the SEC accountable for their actions. He warned of moving the stock to the New York Stock Exchange if such halts were to reoccur.
Conclusion
While Trump’s reaction to the trading halts was strong, market experts emphasize that these measures are standard practice in the stock market. Both Nasdaq and NYSE adhere to the same SEC rules, rendering Trump’s threat of changing listings ineffective.
Source : ktvz.com