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The price of the shares in Digital World Acquisition Corp. closed trading nearly 14% below their opening price on Friday after the shell company’s shareholders approved a merger with former President Donald Trump’s social media company.
DWAC had opened the trading day at $44.20 per share but quickly fell after the vote.
At the close, DWAC shares sold for $36.94 per share, a decline of $5.87, or 13.71%.
The newly merged Trump Media could begin trading next week under the new ticker symbol DJT.
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Trump holds a majority stake in the new company, which would have been worth $3 billion or more given DWAC’s opening price on Friday.
However, the value of its future shares will be less if the newly designated stock does not return to its opening price as of Friday morning.
A total of 11% of DWAC’s tradable shares are shorted, according to FactSet data.
This means that investors who hold these positions are betting that the price will fall before they have to buy the shares back and return them to the companies that loaned them the shares.
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2024-03-22 20:30:03
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