In this article DJT Follow your favorite stocks CREATE FREE ACCOUNT A smartphone displays the logo of Donald Trump's Truth Social app on March 25, 2024. Anna Barclay | Getty Images Former President Donald Trump will soon be free to start unloading his multibillion-dollar stake in his fledgling social media startup, Trump Media . But the potential payday — Trump's stake comprises more than half of his on-paper net worth , per Forbes — carries risks for both the Republican presidential nominee and his company.
Trump holds 114,750,000 shares, or nearly 59%, of Trump Media, which owns the social media platform Truth Social. As of Thursday, his stake was worth slightly more than $2.6 billion.
But Trump, along with others who received stock in the company before it went public, are barred from selling any of their shares for approximately 180 days under a "lock-up agreement." Those provisions are a common feature of IPOs, meant to prevent company insiders from immediately cashing in their shares as soon as a company goes public. This helps keep the stock stable and marketable to investors in its first few months on the market.
watch now VIDEO 11:45 11:45 How Truth Social can make money for former President Trump Markets and Politics Digital Original Video Trump Media made its debut on the Nasdaq under the ticker DJT in late March, following a lengthy merger process with a special purpose acquisition company. The lock-up restrictions, which began after the businesses combined, a.