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

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 …