On November 29, 2021, traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, USA.
Bren Dank Demead | Reuters
After news that the app had set a target release date of February 21, the stock prices of companies related to the planned social media app backed by former President Donald Trump rose sharply on Thursday.
As of the close of the trading day on Thursday, the stock price of Digital World Acquisition Corp., a blank cheque company, had risen nearly 20%, and the trading volume was significantly higher than average. After the Trump app Truth Social stated on the Apple App Store that it was expected to go live next month, the revenue came.
Reuters first announced the target date on the app store, where Truth Social can make reservations. February 21st is President’s Day, a federal holiday.
Trump’s company is marketing as an alternative to social media giants Twitter and Facebook, both of which ban him for inciting riots in the U.S. Capitol on January 6, 2021. Thursday was the anniversary of the attack on Congress, which disrupted the process of confirming President Joe Biden’s election as Trump.
DWAC and Trump Media & Technology Group announced their merger in October. As retail investors began to snap up stocks, DWAC’s stock price soared from about $10 per share to $175 per share. However, the price has dropped significantly in recent months. It closed at $60.27 per share on Thursday.
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DWAC is a so-called special purpose acquisition company. Like other SPACs, it has no other basic business except for raising funds from the public stock market. The goal is to determine within a certain period of time that another company merges with the funds or purchases two years or more. short.
In December last year, DWAC disclosed in a public document that before announcing the merger transaction, two financial regulators, the US Securities and Exchange Commission and the Financial Industry Regulatory Authority, had launched investigations into stock trading and communications with Trump.
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