Trump Media Sinks as SEC Declaration May Dilute Existing Holders

Trump Media & Technology Group Corp. sank in late trading after the US Securities and Exchange Commission declared effective a regulatory filing that could dilute shareholders.

The long-awaited clearance lets investors in the firm’s derivatives, known as warrants, swap their holdings for shares in the company which can dilute long-time investors. The social media company that’s mostly owned by former president Donald Trump fell roughly 15% to around $26 in late trading, adding to a 36% slide this month through Tuesday’s close.

“With our S-1 declared effective, we’re expecting to be well positioned to energetically pursue TV streaming, other enhancements ...