Trump Media CEO Calls Out Nasdaq for Market Manipulation in DJT Stock

Devin Nunes, CEO of Trump Media & Technology Group (DJT), has sent a letter to Nasdaq’s CEO expressing concerns about potential market manipulation through the “naked” short selling of DJT stock. In the letter, Nunes outlined detailed instructions for shareholders on how to prevent their DJT shares from being loaned out to short sellers who bet on the stock price dropping.

Nunes highlighted the unfair practice of “naked” short selling, which can disadvantage retail investors while benefiting sophisticated market participants. He raised concerns about brokers having a financial incentive to lend out shares that they do not actually possess, potentially leading to market manipulation.

Although not explicitly accusing anyone, Nunes mentioned that reports show DJT as the most expensive U.S. stock to short as of April 3, 2024. He urged Nasdaq to take steps to promote transparency and compliance, such as requiring brokers to disclose their “Net Short” positions and preventing the lending of non-existent shares.

In response, Nasdaq expressed its commitment to ensuring market integrity and protecting the interests of retail investors. The exchange will work with brokerage firms to promote transparency and prevent market manipulation through naked short selling. Brokers will be required to disclose their net short positions and prevent lending out non-existent shares.

Trump Media & Technology Group expressed its willingness to assist Nasdaq in safeguarding the interests of retail investors and ensuring market integrity. The company will work closely with Nasdaq to promote transparency and prevent market manipulation through naked short selling.

Overall, this incident highlights the need for greater transparency and accountability in financial markets, particularly when it comes to naked short selling practices that can harm retail investors while benefiting sophisticated market participants.