The filing contained the following:
"Brokerage firms may facilitate short selling in DJT’s shares by lending DJT’s shareholders’ shares held in margin accounts. Through this practice, brokerage firms earn an alternative source of revenue by “lending” shares to sophisticated and institutional investors who are betting that the price of the particular stock will decrease over a period of time. If the price of the stock in fact decreases, then the brokerage firm and the sophisticated and institutional investors will have made a profit, while the ultimate retail investor has not."
OP comment:
The SEC filing deliberately omits that a stock holder is entitled to receive a split of the short-sale loan proceeds from which they would earn income.
At the extremely high lending rates that have been reported for DJT stock borrowing, the loan income available is significant and these could ameliorate losses from long holdings as DJT's stock price decreases…
(the following is provided for information only to show the misinformation by omission contained in the Trump Media SEC filing; OP has no affiliation or interest in entities referred to in this post and provides the information for education purposes only)
from: https://www.schwab.com/learn/story/earning-extra-income-with-securities-lending
'The main benefit of stock lending is its income potential. If your shares are loaned out—which may or may not happen based on market demand—you'll earn interest daily, including weekends and holidays, which you'll typically split with your broker. Most brokerage, retirement, and trust accounts are eligible, and you can terminate the agreement or sell your shares at any time, even if they're on loan.
"Stock lending can be an attractive way to boost total returns from a long-term investment," says Cameron Creel, a senior manager of securities lending at Schwab. However, it's important to note that loaned securities are not covered by the Securities Investor Protection Corporation, which safeguards customers if their investment firm fails.
Instead, some firms, including Schwab, post cash collateral to be held in custody for the client in the event of default. "Investment firm failures are rare but can happen," Cameron says, "so it's important to have this kind of protection as part of a securities-lending program."
Securities lending at Schwab –
Eligibility: Households must have at least $100,000 in assets held in Schwab accounts.
Collateralization: Schwab posts cash collateral equal to the full market value of the securities on loan, which is paid to the investor in the event of the firm's failure.
Interest income: Although it can vary depending on demand and market conditions, interest income—which accrues daily and is paid out monthly—is generally split 50/50 between Schwab and the client.
Trading restrictions: None; clients may sell loaned securities at any time.
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