Donald Trump's family's way of making money, getting involved in the "penny stock" market with opaque information
The move by Donald Trump's eldest son, Donald Trump Jr., and his daughter-in-law, Lara Trump, to invest in Salem Media, a right-wing broadcasting network, has caused a surge in its stock price and further involved the Trump family in the so-called "penny stock" market known for its lack of transparency and high risks.
This Monday, Donald Trump Jr. and Lara Trump announced their investment in Salem, a conservative broadcasting network famous for spreading films about conspiracy theories of election fraud in the 2020 election. As of 12:50 PM New York time, the company's stock price surged 152% to $1.16, with an intraday spike of 210%, doubling on the day.
Such events have become a familiar pattern since Trump won the election: when members of the presidential family announce they are investing in or advising small, thinly traded companies (usually classified as "penny stocks"), the stock prices of these companies quickly soar—only to often fall back later.
For example:
• Last November, Donald Trump Jr. became an advisor to Unusual Machines Inc., a drone company;
• In December, he joined the board of PSQ Holdings Inc., an e-commerce platform promoting conservative businesses;
• In February this year, Donald Trump Jr. and his brother Eric Trump jointly invested in Dominari Holdings Inc., a microfinance company.
In this latest transaction, Salem acquired a 30% stake in Donald Trump Jr.'s mobile news aggregation app, MxM News, in return for which he will help promote the platform. Meanwhile, Lara Trump (former vice-chair of the Republican National Committee and Eric Trump's wife) will continue to host her program, "The Right View," on the Salem platform. Salem did not disclose the specific amount of shares obtained by the two Trump family members.
Original source: https://www.toutiao.com/article/1829524229047360/
Disclaimer: The article solely represents the author's views.