Short sellers blamed by Trump Media for stock swings in warning letter to Nasdaq

Trump Media & Technology Group has raised concerns that its stock, trading under the ticker DJT, may be a target of “potential market manipulation” due to naked short-selling activity. 

“Reports indicate that, as of April 3, 2024, DJT was ‘by far’ ‘the most expensive U.S. stock to short,’ meaning that brokers have a significant financial incentive to lend non-existent shares,” Trump Media CEO Devin Nunes wrote in an April 18 letter to Nasdaq CEO Adena T. Friedman.

Short selling occurs when a trader borrows shares of stock expected to lose value and then sells the shares on the market. The trader will later purchase the stock at a lower price and then return the shares to their trading firm with the intention of purchasing the stock at a lower price than the borrowed shares. Short selling is legal, whereas naked
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