I’ve seen discussions here about this, but I know nothing about the stock market. Husband is now very interested in buying but wants to know more about the warrants and how they work. When the market crashes, we’re assuming the warrants will be affected also? Thanks in advance pedes
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In my unprofessional limited experience over the last 2 years trading SPACs (which is what DWAC is) I would confirm a couple of things.
1- do the warrants convert 1:1 for stock after the merger is finalized 2- if the merger for whatever reason does not happen, do the warrants maintain a minimum value?
Sounds good. Thanks for your response. How do I confirm these two fine points you’ve made? When I initially saw the conversation here I tried telling the husband to take a look, but he was too busy involved in buying stock that would rise when the market falls. He had a conversation with a good friend today who mentioned he was buying in and now he’s interested. He’s never come on here, but does count on me to keep him in the loop. So tonight he asked if I could get some info for him.
I would recommend hopping on Reddit or Yahoo finance message board and asking a couple questions. Somebody there usually knows what the hell they are talking about and can break it down.
YouTube also has some good commentators on SPACs. (I don’t know if any in rumble)
Might need a little clarification here... they’re not totally worthless, just mostly worthless, if the deal does NOT go through. Technically they could merge with anyone between now and 2028 right? Long odds, though, if the Trump Media deal falls through. If the deal DOES go through, you can buy a share of Trump Media for $11.50 on top of what you bought the DWACW share for. You still have to cough up another $11.50 on top of whatever you paid for the warrant.
This is not financial advice. I am a crayon eater. The purple ones taste like grapes.
very helpful - - thank you!
Good rationale. And I have a feel the deal will go through. I could see the initial vote having a small chance of a delayed decision or hick up which is common. But even those odds are low.
I currently am not holding. I sold out. And I am waiting low 40s to re enter
My understanding is the warrant entitles you to purchase a share of 'whatever' stock is formed or which exists after the deal, at a price of 11 dollars and change each. So a warrant gives you one share of stack at 'right now' price and later one additional share at 11 dollars and some change. So if the stock price is 50 bucks a share the warrant should be 61 something...your 11 dollars added in for later.
I think.
Buy and hold, we are probably past that moment where large instant rises will occur, and people are gaming the stock right now, keeping it fluctuating, this is not the thing to look at for instant gratification. Buy and hold.
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