Something is coming to Truth Social and it scares them. Shills everywhere here talking about selling DWAC, Musk attempting to rebrand Twatter, and now WaPo hit piece on how Truth Social is failing and Trump may go to GETTR. And its just Tuesday. I’m comfy AF.
(media.greatawakening.win)
🧠 These people are stupid!
E-Trade
Holy shit I have $1000 buying power on webull I must have funded the account when I opened it back in 2020 and completely dropped the app.
Looks like I'm getting DWACW tomorrow! Someone had explained to me what warrants are but I forgot. They're super cheap, do they turn I to shares after a set amount of time?
Not really - they are more like an option to buy that you have to pay for. They can be exercised 30 days after the merger (I believe it's 30, someone correct me if wrong). For every one warrant you have, you can purchase one share of the new company for $11.50. Example, if your bought DWACW at today's price of $12.21, 30 days post merger, you can use that plus $11.50 to purchase a share of the new company. It would be the same as purchasing one share of DWAC for $23.71. I'm new to SPACs so some of my details may be a little off - anyone more knowledgeable, please chime in.
So I'd be getting shares of dwac for a total of 23.71 each? It's setting a reserved base price at the current warrant price plus 11.50 after 30 days?
That is my understanding. 30 days post merger.
Yes, warrants are like a call contract (in which you buy the right to purchase stock at an agree price at a future date) but you buy them individually instead of a contract for 100 shares and they have an expiration that is several years out. As described above the warrant is to be able to buy a real share for $11.50 and you'll be able to do that even if the stock were to be say $100 in the future. Think of the warrant like you bought a big discount coupon for the future stock.
Just a (un)friendly note that I'm still not 100% sure, but it's very likely you will owe tax on the difference between the amount you pay and the value of the share you receive. For example, you purchase DWACW at $12.50, the exercise is $11.50, for a total of $24 paid. If the share you receive is worth $52, you will pay ordinary income tax on the $28 difference.
you're probably right but I think that capital gains is only paid when you sell the shares for the profit.