Do shares have to be DRS’ed on DWAC or GameStop in order to take possession of them later, or is that just needed to MOASS and prevent systemic shenanigans?
From listening to audio about this yesterday regarding The Great Taking, the answer is absolutely “yes”.
I forgot that like how we are “lenders” to banks and not “depositors”, we also don’t own the stocks in our brokers’ accounts. They’re all backed by banks, so if banks go, they will too.
My understanding is this, and someone please correct me if I'm mistaken...
A warrant allows you to buy a share (of the new company, TMTG) for $11.50 after the merger. The current price of a warrant is $5.50 so if you buy that, plus the additional $11.50 to be paid post-merger, then your share will cost you $17 total, which is a $1 discount compared to buying the share ($18 currently).
This part I'm not fully knowledgeable about... but I believe that if the merger fails to go through then shareholders (DWAC) get refunded a set amount per share (around $11 if I recall) regardless of what price they bought at, so you have sort of an insurance policy if the merger doesn't happen. Even if you don't recover 100%, you can still recover something. Warrants on the other hand are just cancelled with no value if the merger doesn't go through.
When the odds of the merger being successful were more of a gamble (like a year or more ago) it was worth it to pay the premium to buy a share (DWAC) because you had the refund "insurance policy." That's why you could buy a warrant (DWACW) back then for a big discount (discount meaning compared to buying a DWAC share + the future $11.50 cost).
As the odds of the merger increase (like they now are) the discount for DWACW warrants decreases... meaning now, tonight, a warrant + the future $11.50 fee is only a $1 discount compared to buying a DWAC share. That $1 discount used to be much greater a year+ ago.
Someone please let me know if I'm correct about all that, because as someone holding both DWAC and DWACW I'd like to make sure that I'm understanding it correctly.
I bought a share of DWAC. I didn’t understand the other 2 listings, they had extra letters added to DWAC. Can anyone enlighten me on that?
DWAC is the normal share
DWACW are warrants.
DWACU is a mix of one share of DWAC plus one half of a warrant.
Look each up to see where they are currently trading.
Do shares have to be DRS’ed on DWAC or GameStop in order to take possession of them later, or is that just needed to MOASS and prevent systemic shenanigans?
A lot depends on the finicial strength of your broker. Low rent brokers like robbinthehood. I would transfer.
From listening to audio about this yesterday regarding The Great Taking, the answer is absolutely “yes”.
I forgot that like how we are “lenders” to banks and not “depositors”, we also don’t own the stocks in our brokers’ accounts. They’re all backed by banks, so if banks go, they will too.
https://www.investopedia.com/terms/d/dwac.asp
My understanding is this, and someone please correct me if I'm mistaken...
A warrant allows you to buy a share (of the new company, TMTG) for $11.50 after the merger. The current price of a warrant is $5.50 so if you buy that, plus the additional $11.50 to be paid post-merger, then your share will cost you $17 total, which is a $1 discount compared to buying the share ($18 currently).
This part I'm not fully knowledgeable about... but I believe that if the merger fails to go through then shareholders (DWAC) get refunded a set amount per share (around $11 if I recall) regardless of what price they bought at, so you have sort of an insurance policy if the merger doesn't happen. Even if you don't recover 100%, you can still recover something. Warrants on the other hand are just cancelled with no value if the merger doesn't go through.
When the odds of the merger being successful were more of a gamble (like a year or more ago) it was worth it to pay the premium to buy a share (DWAC) because you had the refund "insurance policy." That's why you could buy a warrant (DWACW) back then for a big discount (discount meaning compared to buying a DWAC share + the future $11.50 cost).
As the odds of the merger increase (like they now are) the discount for DWACW warrants decreases... meaning now, tonight, a warrant + the future $11.50 fee is only a $1 discount compared to buying a DWAC share. That $1 discount used to be much greater a year+ ago.
Someone please let me know if I'm correct about all that, because as someone holding both DWAC and DWACW I'd like to make sure that I'm understanding it correctly.
That is all correct. I buy the warrents because it gives me more leverage. I can buy 3 of them for the price of a share.
Bingo! Same here.