In this article, we are going to take you through the whole processes you will need to follow to buy DWAC stocks. We will also show you how you can make money in DWAC stock. We will explain easy the step-by-step procedure to aid your buying DWAC.
DWAC is a Special Purpose Acquisition Company (SPAC). The company’s goal is to finance the kickoff capital of a privately owned company.
There was a release by the Trump Media Technology Group (TMTG) on October 20, 2021indicating a planned merger with the DWAC. Therefore, the new company coming out of the merger will trade on the NASDAQ under the symbol TMTG.
Purchasing stock of DWAC comes with the risks associated with SPAC. Every investor must understand that SPAC has underlying risks which are not related to the conventional equity holdings.
One of those risks is that investors have limited information regarding the management and finances of the SPAC. In the absence of full investment information, the investor faces high risk.
The DWAC stock is traded in the NASDAQ and available to the public. As at 28th January, 2022, the price of DWAC stock hovers around $67.44 with positive growth indicating 1.52% rate.
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Let’s get in there together!
What is DWAC Stock?
Digital World Acquisition Corporation (DWAC) is a SPAC which was initiated with the aim of financing a new social media company led by former U.S. President, Donald J. Trump.
DWAC was nurtured and incorporated in early 2021 and perceived to be a reaction from president Trump’s camp after he had lost the 2020 election.
The US Securities and Exchange Commission’s data revealed that DWAC presently holds over $293 million in trust which is part of the resources to mobilize towards scaling up the TMTG.
Is DWAC stock a Good Buy?
It is important to note that SPAC’s stocks price have been experiencing downward trend in recent time and trading well below the de-SPACing price.
By de-SPACing price, we mean, the price of the stock after a complete merger.
There is evidence of high volatility of DWAC stock prices which may be attributed to fundamental factors. However, there is need for investors to trade patiently, study the dynamics of the merger and wait for the de-SPACing process to finish.
The DWAC is a good buy for the long-term investors as it plans to concentrate on the acquisition of companies in the health sector of the United States.
Would DWAC Stock Go Up? See Expert Analysis
When DWAC and TMTG last October made a declaration that they have settled to arrange a de-SPACing that will bring TMTG to public markets.
This news forced the DWAC stock price up from $10 to $175 per unit stock. This is an astonishing rise in the value of DWAC triggered by information of greater expectation.
The DWAC stock price witnessed a steady decline over the past month and now averaging $65.45 but there is evidence that it may go up at the long-run. The merger will make DWAC stock stronger and promote investors interest. Sure, DWAC stock has the potential to go up.
DAWC Stock Overview: All You Need to Know About DWAC stock
Incorporated in late 2020, and based in Miami, Florida, Digital World Acquisition Corp trades on the NASDAQ exchange under the ticker symbol; DWAC.
Patrick Orlando is the present CEO of DWAC. He has enormous experience having spent five years before now at the Deutsche Bank (NYSE:DB).
We understand that Deutsche was Mr. Trump’s biggest lender when he was venturing into the American politics. Patrick Orlando is an expert who specializes in emerging markets in equities and fixed income derivatives.
As said earlier, the aim of the DWAC/SPAC is to raise money for the TMTG, a social media company led by Donald Trump.
You must note that buying of DWAC stock is not a direct investment in Trump TMTG) because DWAC is a mere SPAC; a blank check company in the financial sector.
According to information in the DWAC’s filing at the US Stock Exchange, the objective of a SPAC, is to effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Do not forget that the earlier aim of establishing the DWAC was to serve as source of financing for the TMTG via a merger initiative but upon the conclusion of the merger TMTG may become a publicly-traded stock listed on a stock exchange.
Is DWAC Stock publicly traded?
Yes. The DWAC stock went public on the 3rd September, 2021, with its initial public offering (IPO) pegged at $10.00 per unit stock and offering 25,000,000 units of stock to raise $250 million.
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It is traded in NASDAQ using the symbol DWAC.
Where and How to Buy DWAC Stock
Class A Common Stock (DWAC) is listed on the NASDAQ exchange, which means you can buy the stock from most brokerage firms.
You can buy DWAC stock if you follow these 7 steps below:
Step 1: You Must First Understand the DWAC’S Financial Reports
As at the end of March 2021, DWAC’s total assets was $87,500 on the balance sheet.
The sum of $25,000 of out of the total was liquid short-term cash. We observed that $62,500 was in deferred costs related to the DWAC’s IPO. By September 2021 DWAC went public offering 25,000,000 units of stock to raise $250 million at $10 per share of stock.
Understanding these kinds of statistics would guide your investment decisions. SPAC is associated with information shortage which is a big risk to the investor. You must understand the market position of the DWAC before you put in your money.
Step 2: Compare the Investment Platforms
You will need to use an updated comparison table to help you locate the brokerage that fits your financial goal.
You do this to find out their degree of accessibility to the stock exchange market. You must ensure that
Step 3: Choose a Broker
You need to choose your brokerage firm with caution. You need to know whether the brokerage has access to the exchange you want to trade on.
You will consider the charges and the minimum deposit of the broker before you make your choice.
Investing in DWAC follows largely the same process as buying any other stock so you need a broker through whom you can buy the DWAC stocks.
Step 4: Open A Brokerage Account with Your Broker
The next step is to open an account with your chosen broker. This stage involves completion of some application and providing relevant information to the broker.
It is like opening a regular bank account online. You cannot trade in online stock without opening this account.
Step 5: Deposit Money to the Account to Confirm Your Payment Details
You need to transfer funds into your brokerage account.
You have to deposit a certain minimum amount of money to the said account and wait for confirmation from your broker. Once the deposit is confirmed, then, you are set to commence trading.
Step 6: Choose Your Order Type
The DWAC stock buying gives you the opportunity to choose the kind of order suitable to your investment goals. There are three main order-types as explained hereunder:
This is an order to undergo the transaction at the prevailing available market price.
This allows the investor to buy or sell a stock at a specific minimum price above which he will not be allowed to buy.
This is an order to buy or sell stock when its price moves past a particular point. The idea of a buy-stop-order is to help the market to enter a position in DWAC if the stock rises to the stop price.
Step 7: Buy the DWAC stock and Monitor Your Investment Progress
Once you have clicked “Purchase Now” then you have become a shareholder in DWAC.
It is your responsibility to put your eyes on your investment especially the price movement, company’s performance and other fundamentals.
Doing this will help you make continuous evaluation of your investment performance in order to optimize your portfolio.
How You Can Make Money from DWAC Stock.
DWAC does not presently pay a dividend. It therefore not a dividend stock but you can still laugh to the bank because it has the potential for capital appreciation.
DWAC was going at over 400% rate of growth in October 2021 following the planned merger and is projected to attain the same position in 2027 considering its amazing potential for a steady capital growth.
This means that your investment is going to appreciate over time. This appreciation of your capital- invested means more money for you.
To make money in DWAC stock you will have to participate in the market by monitoring your investment and taking the buy-or-sell decisions at the right time. This will help your investment to appreciate over time.