Table of Сontents
- What Is Truth Social?
- Trump Media and Technology Group Basics
- TMTG & DWAC Merger
- How to Buy TMTG Stock
- Bottom Line
On February 21, 2022, Trump’s media business released Truth Social, a social media app. Find out more about TMTG, the current state of its planned merger with DWAC, and how to purchase TMTG shares.
What Is Truth Social?
Trump Media and Technology Group, or TMTG, developed the social media site Truth Social. On February 21, 2022, the Twitter-like app was released, and it soon surpassed all other free downloads in the Apple store.
The structure and user interface of the Truth Social platform are similar to those of Twitter. Users may publish updates called “truths,” the network’s version of “tweets,” and share updates called “truths.” The social networking platform also includes a notification system and a newsfeed termed a “truth feed.”
Trump Media and Technology Group Basics
Former US President Donald Trump established the privately held Trump Media and Technology Group, sometimes known as TMTG, in February 2021. Truth Social, a social media program that has already been released, as well as the TMTG+ streaming network and TMTG News, are prospective new venues for Trump’s business.
TMTG Stock Price and Symbol
Trump Media and Technology Group will become a publicly traded stock listed on the stock market under the name TMTG if the proposed merger with DWAC is successful. The shareholders of the DWAC SPAC are able to sell their shares for cash and/or retain any new shares of the TMTG firm that was purchased…
TMTG & DWAC Merger
Trump stated on October 20, 2021, that TMTG and Digital World Acquisition Company, a SPAC with a particular mission, will unite (DWAC). Before September 20, 2022, when DWAC stockholders may elect to become shareholders in TMTG or elect to sell their shares, the merger is anticipated to be completed.
The fundamentals of SPAC operation are as follows:
- SPACs are first created by a team of institutional investors and experienced executives, often coming from the world of private equity.
- The SPAC is first launched through an initial public offering or IPO.
- The SPAC will use the proceeds of the IPO to acquire a privately-held company.
- Because a target acquisition is not known at the time of their formation, SPACs are known as shell companies or “blank check companies.”
- Once the target company is acquired, the SPAC founding members profit from their stake, while the SPAC shareholders receive an equity interest in the acquired target company or they may cash out of their shares.
Warning: SPACs are often speculative, and many of their mergers fall through. SPACs are not suitable for all types of investors, despite the fact that they have recently experienced enormous popularity and financial media attention. In a similar vein, many initial public offerings (IPOs) experience price declines after becoming public.
How to Buy TMTG Stock
There are a number of factors to take into account before investing in TMTG stock when the DWAC merger is finished and it becomes public. Trump Media and Technology Group has little historical or financial information accessible, however, before investing, investors should consider the possibilities and hazards.
Note that buying TMTG is not suggested by this study. The procedures below may be useful for investors who are interested in exploring a possible investment.
Step 1: Understand TMTG’s Financial Position
When their planned merger takes place, the financial information that is now accessible about Digital World Acquisition, which is providing TMTG with early startup cash, will be the only information regarding TMTG’s financial situation. On April 13, 2022, DWAC issued its 10K, which discloses that the company lost $1.4 million in 2021.
Step 2: Assess TMTG’s Financial Reports
Investors must wait until forward-looking statements are made public through the filing of form S-4, which is needed with the SEC prior to a merger or acquisition, as Trump Media and Technology Group has no financial background. On April 14, 2022, the S-4 was still pending.
Note: A prediction of sales, earnings per share, capital expenditures, dividends, capital structure, and associated financial factors are included in a forward-looking statement. Investors should be aware that such remarks are only predictions, forecasts, or speculation. As a result, these statements are not historical facts that can be relied upon, unlike financial statements from publicly listed companies such as the income statement, balance sheet, and statement of cash flows.
Step 3: Evaluate TMTG’s Potential Compared to Your Investment Horizon
Investors should examine their investing goals, time horizon, and risk tolerance when thinking about buying stock. For instance, a swing trader would be more concerned with the possibility of short-term momentum than a long-term investor would be with solid fundamentals.
Step 4: Select a Brokerage
Investors may use the same procedure as buying any stock, which starts with choosing a brokerage company, to purchase shares of TMTG stock. A trading account, such as a regular brokerage account or a retirement account like an IRA, may then be opened by the investor.
Either a full-service broker or a cheap brokerage firm can open trading accounts. Although they demand higher charges, full-service brokers offer advising and portfolio management services.
Step 5: Choose an Investment Size and Strategy
After TMTG goes public, investors who have done their homework and have decided to invest should think about how many shares to buy and what investing strategy to use. An investor’s holding time and exit plan will be determined by their investing methodology. For TMTG, investors have three options: short-term trading, swing trading, or long-term holding.
Step 6: Choose an Order Type
When placing orders for equities, investors have a wide range of options. Market orders, limit orders, stop orders, and recurring orders are the four primary order types.
- Market order: The most typical order type, a market order promptly performs a deal at the best transaction price.
- Limit order: The most typical order type, a market order promptly performs a deal at the best transaction price.
- Stop order: A stop order, also known as a stop-loss order, is a directive to purchase or sell a stock once it hits the stop price. If the stock increases to the stop price, a buy-stop order might be utilized to open a position in TMTG.
Step 7: Submit the Trade
Investors just need to submit the transaction by placing the order once they’ve settled on a preferred investment size and order type. If the order is a market order, it will be completed right away at the best transaction price. The investor’s account will then show the stock.
A limit order or stop order, on the other hand, requires the investor to hold off on closing the transaction until the stock hits the specified price or stop loss level.
Bottom Line
Privately held Trump Media and Technology Group, or TMTG, intends to combine with Digital World Acquisition Company or DWAC. By September 20, 2022, it is anticipated that the merger will take place. TMTG provides its customers with the social networking app Truth Social and has plans to launch TMTG+, a streaming service, and TMTG News.
