Trump Media alerts Nasdaq to potential market manipulation from 'naked' short selling of DJT stock

• Trump Media has warned the Nasdaq of 'potential market manipulation' of the company's DJT stock by "naked" short selling of shares.
• The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers.
• Former President Donald Trump owns nearly 60% of Trump Media shares.
• The paper value of his stake has dropped by billions of dollars since DJT began public trading last month.

Trump Media has warned the CEO of the Nasdaq Stock Market of 'potential market manipulation' of the company's stock by "naked" short selling of shares.

The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then execute trades betting that the price of the stock will fall.

Trump Media disclosed the warning to Nasdaq CEO Adena Friedman in a filing Friday morning with the Securities and Exchange Commission.

DJT's share price has rallied in recent days, but is still sharply lower than the more than $70 per share it debuted with on March 26. Former President Donald Trump owns nearly 60% of Trump Media shares. The paper value of his stake has dropped by billions of dollars since DJT began public trading last month.

Trump Media CEO Devin Nunes in his letter to Friedman did not directly accuse anyone in particular of naked short selling, which is the sale of stocks without first having borrowed such sales for that purpose.

But Nunes noted that as of Wednesday "DJT appears on Nasdaq's 'Reg SHO threshold list,' which is indicative of unlawful trading activity."

"This is particularly troubling given that 'naked' short selling often entails sophisticated market participants profiting