Company: DJTWW
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001140361-25-028418
Chunk: 125

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 125
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        may continuously increase. Short selling allows us to profit from declines in market prices to the extent such decline exceeds the transaction costs and costs of borrowing the securities. However, since the borrowed securities must be replaced by
        purchases at market prices in order to close out the short position, any appreciation in the price of the borrowed securities would result in a loss. Purchasing securities to close out the short position can itself cause the price of securities to
        rise further, thereby exacerbating the loss. We may mitigate such losses by replacing the securities sold short before the market price has increased significantly. Under adverse market conditions, we might have difficulty purchasing securities to
        meet margin calls on its short sale delivery obligations, and might have to sell portfolio securities to raise the capital necessary to meet its short sale obligations at a time when fundamental investment considerations would not favor such sales.
       
      If other short positions of the same security are closed out at the same time, a “short squeeze” can occur where demand exceeds the supply for the security
        sold short. A short squeeze makes it more likely that we will need to replace the borrowed security at an unfavorable price.
       
      Investments in equity securities are subject to variation in their prices.
       
      The prices of equity securities we have invested in may fall over short or long periods of time. In addition, common equity represents a share of ownership of
        a company, and rank junior to debt and preferred equity in their claim on the Company’s assets in the event of bankruptcy.
       
      We may use leverage in our investment program, resulting in a greater risk of loss.
       
      We may use leverage in our investment program, including the use of borrowed funds and investments in certain types of options, such as puts, calls and
        warrants, which may be purchased for a fraction of the price of the underlying securities. While such strategies and techniques increase the opportunity to achieve higher returns on the amounts invested, they also increase the risk of loss. To the
        extent we purchase securities with borrowed funds, our net assets will tend to increase or decrease at a greater rate than if borrowed funds are not used. If the interest expense on borrowings were to exceed the net return on the portfolio
        securities purchased with borrowed funds, our use of leverage would result in a lower rate of return than if we were not leveraged.

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      Investments in securities of other companies or issuers, including debt and equity instruments such as bonds, preferred
        or common