Former President Donald Trump sparked a frenzy in the stock market on Friday with his announcement that he has no plans to sell shares in his controversial social media company, Truth Social. The news sent the stock prices skyrocketing, with a surge of 25% before trading was halted for volatility. However, experts are cautioning that the impending expiration of lock-up restrictions could complicate Trump's ability to sell his shares without adversely impacting the share price.

During a press conference, a reporter asked Trump if he had any intention to sell shares in Truth Social, to which he emphatically responded, "No, I'm not selling. No, I love it." This declaration immediately caused the stock price of Trump Media & Technology Group, the owner of Truth Social, to experience a significant boost, reaching a 19% increase in late afternoon trading.

The lock-up restrictions, which apply to Trump and other insiders in Trump Media & Technology Group, are set to expire as early as September 19, should the closing share price remain above $12. These restrictions prohibit the sale of shares during a specified period following an initial public offering (IPO). However, experts warn that if Trump were to sell a large portion of his stake in the company, it could potentially result in a market crash.

Trump's dominant shareholding in Trump Media, amounting to 57% of the outstanding shares, represents a stake of 114.75 million shares valued at $1.8 billion based on Thursday's closing price. As the share prices have taken a hit in recent months due to concerns about the expiring lock-up restrictions and the uncertain outcome of the upcoming elections, there is speculation about whether Trump might consider selling a smaller portion of his stake in the company.

The rollercoaster ride for Truth Social's stock value intensified earlier this week after a lackluster performance by the former president during a televised debate. The combination of these factors raised doubts among investors about the company's stability and future prospects. Nevertheless, Trump's insistence on not selling his shares has instilled a renewed sense of confidence, fueling the recent surge in stock prices.

While the market reacted positively to Trump's announcement, financial experts continue to advise caution. The expiration of the lock-up restrictions presents both a challenge and an opportunity for Trump to make moves with his company's shares, but the potential repercussions on the stock price cannot be overlooked. As the situation unfolds, investors and analysts will closely monitor any developments surrounding Truth Social's future and Trump's stake in the company.