You will pay ordinary income tax when exercised, the difference between the warrant and the stock price. You will pay taxes again on capital gains when you sell, if you sell. As I understand it.
If I would have just bought 1000 of these when it was $4 …
The ordinary income tax you referred to definitely seems to be the case if you received the shares from your company, but it's not so clear it's taxable if you went out and purchased them. Do you have something that gives a definitive answer, because I've seen both sides argued.
I’ve heard what you have mentioned but I have never read it under any explanation of warrants and taxes. I’ll dig a bit more and see if I can find anything on issue versus purchase. Issue would probably behave like an rsu, so that might be where that info comes from. No a financial dude, just like paying attention to the markets.
The section you're likely most interested in is "The Offering" although I encourage you to read the entire thing (in between naps of course).
Your DWACW warrant gives you the "right" to buy a stock of regular shares (TMTG) for $11.50.
Example: Your cost would be $11.50 plus the amount you have already paid for the warrant (right to buy).
On this example if you purchased the warrant (right) for $8.00 per and you decide to exercise the warrant for regular shares at $11.50 then you would have spent $19.50 for a stock that is currently trading on the market in the ballpark of $40. Your profit would be $20.50 per if you decide to turn around and sell the regular stock you just acquired. You can also choose to keep the newly acquired shares of TMTG if you have confidence that the stock will continue to go up in price and are willing to take the risk of course.
At this point you may be thinking "what gives. Why such easy money?".
Well YOU took ALL the risk and, as of now, are getting paid for that risk. If the merger would have failed, your warrants would have expired worthless (unless you are into buying and selling warrants which you certainly could have). You would have lost all of the money you invested in the warrants. With a regular stock (DWAC) the investor has the ability to sell his/her stock if they see that the merger may not have gone through days prior to the failure of merger and may have still made money, broken even and or lost less money depending on their purchase price. Not you. Nope. If you intended to see the merger or bust your warrant contract and ability to make any money at all was contingent on a successful merger.
I hope your rewarded handsomely for the risk.
*Keep in mind the above mentioned is NOT advice and is a simple example of what one could do. There are many strategies you could employ depending on your ultimate goal.
I believe that we can sell them at the original cost of the warrant "buy price" ($15 - $20 each) and then whatever the converted share price is at the time of sale is all profit for you.
I think the sale deadline is 2028 so hopefully by then as more acquisitions are made, the value of each share will be many times more than what your original warrant cost was.
Wallstreet is a financial arm of the cabal. They are desperate to destroy anything that’s good for Trump or we the people. So they will criminally short/attack things like DWAC, GameStop, Gold and Silver, etc. Which makes these things the greatest investments of all time cause when this fake financial system unravels all of these assets will explode in value.
I am certain they’ve been shorting it hard since the moment it IPO’ed. Every short is a future buyer so they will only help it go even higher when it’s showtime.
Wallstreetbets on Reddit is all leftist scum and they’re mocking the merger saying Trump will sell his shares to pay his legal bills which will tank the stock.
In 2021 robinhood was not even connected to the lit exchange and they didn't own any shares on buyers behalf. They figured out retail loses 51% of the time so they just did payment for order flow and kept the 1%
Well, well, well ... this stock is FINALLY interesting.
I have had no position in this the whole time, but now I put it on my watch list.
Reddit started trading yesterday, to a lot of fanfare.
TMTG/DJT(?) might do the same.
But will it soar?
The company loses A LOT of money, at least so far.
Not my cup of tea, but this is one that MIGHT shoot higher due to Trump's involvement, the election, and all the rest going on around Trump.
What everyone should hope for now is a single stock inverse ETF to be created for it.
This is where people can buy an ETF to short a stock, without actually shorting it themselves.
If they did that, you could tell all the libtards to buy the inverse ETF -- LOL.
Anyway, this move could give a boost to Trump's net worth, helping out his legal issues until he can finally get some honest judges to sort it all out. Looks like there is only one honest judge in the bunch right now -- the one in Florida.
I wonder if the biggest shareholder in DWAC voted in favor or against all these moves, including the one today.
Susquehanna is a VERY suspect company, IMO, and I wonder if they have been among those who have been trying to keep DWAC from merging. Anyone know?
By becoming the largest shareholder, they can have a lot of input in how shareholder votes go.
They also were a founding member of ByteDance, which owns TikTock.
Oh ... and the founders of Sus all or almost all seem to be from the same tribe.
My DWAC shares are in a regular brokerage, so my plan is to sit on them long term (have already been holding since October ’21.
Unfortunately, my warrants are in my self-directed IRA, and I have no cash in the IRA to exercise them. I have 2,000 warrants, so I’m thinking that I’ll have to sell half of them, and use that $ to exercise the remaining half.
I own this and I've been too busy with personal issues to keep up. I have received letters in the mail but not sure I know what's going on. Where's the best place for me to read and catch up?
Ha, and both DWAC & DWACW are down now from being up at market open.
Watch, Peekaboo is going to try and seize it!
🤣
Those who have dwacw hold the line.
Up 2% now.
Can I finally exercise my DWACW??
And what do we do with them? Lol. I followed a fellow pedes advice and bought a bunch. No idea how to use them. 😆😆.
As I understand it we'd be paying to convert our warrants to shares.
Well hopefully it wont be a big headache. Im a construction guy. Definitely NOT a stock market guy…. 🤣
You will pay taxes twice.
You will pay ordinary income tax when exercised, the difference between the warrant and the stock price. You will pay taxes again on capital gains when you sell, if you sell. As I understand it.
If I would have just bought 1000 of these when it was $4 …
I bought 300 at that price :)
The ordinary income tax you referred to definitely seems to be the case if you received the shares from your company, but it's not so clear it's taxable if you went out and purchased them. Do you have something that gives a definitive answer, because I've seen both sides argued.
I’ve heard what you have mentioned but I have never read it under any explanation of warrants and taxes. I’ll dig a bit more and see if I can find anything on issue versus purchase. Issue would probably behave like an rsu, so that might be where that info comes from. No a financial dude, just like paying attention to the markets.
https://finance.zacks.com/taxation-stock-warrants-7458.html
This article seems to be favorable to your understanding
https://thestartuplawblog.com/warrants-the-tax-story/
You can sell a few to convert the rest. Or just sell them any buy the stock, but wait until the price closes more with the stock.
Now that it’s approved, the difference between warrants and shares should be $11.50 (the conversation fee).
That difference is currently $20, so either shares are overpriced, or warrants are underpriced.
The merger is approved, but hasn't happened yet.....
Here ya' go.
https://www.sec.gov/Archives/edgar/data/1849635/000110465921090302/tm2117087d2_s1a.htm#:~:text=Each%20whole%20warrant%20entitles%20the,only%20whole%20warrants%20will%20trade.
The section you're likely most interested in is "The Offering" although I encourage you to read the entire thing (in between naps of course).
Your DWACW warrant gives you the "right" to buy a stock of regular shares (TMTG) for $11.50.
Example: Your cost would be $11.50 plus the amount you have already paid for the warrant (right to buy).
On this example if you purchased the warrant (right) for $8.00 per and you decide to exercise the warrant for regular shares at $11.50 then you would have spent $19.50 for a stock that is currently trading on the market in the ballpark of $40. Your profit would be $20.50 per if you decide to turn around and sell the regular stock you just acquired. You can also choose to keep the newly acquired shares of TMTG if you have confidence that the stock will continue to go up in price and are willing to take the risk of course.
At this point you may be thinking "what gives. Why such easy money?".
Well YOU took ALL the risk and, as of now, are getting paid for that risk. If the merger would have failed, your warrants would have expired worthless (unless you are into buying and selling warrants which you certainly could have). You would have lost all of the money you invested in the warrants. With a regular stock (DWAC) the investor has the ability to sell his/her stock if they see that the merger may not have gone through days prior to the failure of merger and may have still made money, broken even and or lost less money depending on their purchase price. Not you. Nope. If you intended to see the merger or bust your warrant contract and ability to make any money at all was contingent on a successful merger.
I hope your rewarded handsomely for the risk.
*Keep in mind the above mentioned is NOT advice and is a simple example of what one could do. There are many strategies you could employ depending on your ultimate goal.
Thank you pede! This is why this place is so nice. Good to have people help fellow patriots! Hope we all make some $!
I believe that we can sell them at the original cost of the warrant "buy price" ($15 - $20 each) and then whatever the converted share price is at the time of sale is all profit for you.
I think the sale deadline is 2028 so hopefully by then as more acquisitions are made, the value of each share will be many times more than what your original warrant cost was.
Thanks for clarifying. We need more eyes on this.
The warrants expire on September 28th of 2028, which means you have until then to exercise it.
You can exercise the warrants starting 30 days after the merger, not within 30 days.
Keep it above 17.50
🚀🚀🚀🚀🚀🚀🚀🚀🚀
This gonna be good 🍿
Better and Bigger....
woot woot!!!!
Whys the stock down…?
Wallstreet is a financial arm of the cabal. They are desperate to destroy anything that’s good for Trump or we the people. So they will criminally short/attack things like DWAC, GameStop, Gold and Silver, etc. Which makes these things the greatest investments of all time cause when this fake financial system unravels all of these assets will explode in value.
I do suspect there will be a lot of cabal money thrown at shorting this.
Especially so now that Trump's net worth will jump.
I am certain they’ve been shorting it hard since the moment it IPO’ed. Every short is a future buyer so they will only help it go even higher when it’s showtime.
So they'll loose when we all hang on
Retail trades do not go to the lit market. You have to rout them a special way, or buy in blocks of 100 or more.
Wallstreetbets on Reddit is all leftist scum and they’re mocking the merger saying Trump will sell his shares to pay his legal bills which will tank the stock.
WSB is nothing but commies and bots now.
Patriots have moved to sub forums.
Pity. They were solid back in GameStop short squeeze.
Commies ruin everything.
The original mods were pushed out and it went to shit. Supperstonk is pretty sus as well.
So, what does the real WallStreetBets, the one that executed the short squeeze of GameStop and not these commie fucks, say about Truth Social. Hold?
Who knows the old wsb is gone.
I am,holding as the merger hasn't happened yet. The vote was expected to be positive, so the market wasn't surprised....
And I expected the price to go down, we've seen that with gme when we get a posited earnings report.
Trump can't sell his DWAC stocks for 6 months.
But he can pledge shares.
he can get a loan against them.
Huh?
You saying retail has to buy in blocks of 100 shares for DWAC?
Where did you get that idea?
Read it about 10,000 times on the stock boards.
You have to rout it a special way, or it just go's to the dark pool. This is especially true on heavily shorted stocks.
You can select IEX and it goes to lit market right?
Either way, the entire market is fraudulent and there is no true price discovery because all the hedge funds are faggots.
Yes, but not all brokers allow it.
Oh ... LOL.
Try buying 1 share.
See what happens.
He didn’t say you couldn’t buy less than 100 shares, obviously you can buy any amount of shares.
He’s talking about how to buy so that your order is routed through the lit market, and not a dark pool.
OK, got it.
That wasn't clear to me in his post.
I see plenty of trades under 100 shares going through.
I have not followed this story in detail because it didn't mean anything to me unless it became a Trump company.
Now that it looks like it will, I do find it interesting.
Did you see my link to Gary?
You think he doesn't know how the market works.
He is running the thing.
I misunderstood your post.
And I don't know who Gary is.
But that doesn't matter to me.
I just watch the charts and follow the official news as it comes out.
The super-duper-secret stuff doesn't mean anything to me.
If it jumps and has something solid behind the jump, I'll probably be on it.
Until then, I would rather pursue other ideas.
Carry on.
Gary is the chairman of the SEC.
Read the link.
It's not a secret when he confirms it.
In 2021 robinhood was not even connected to the lit exchange and they didn't own any shares on buyers behalf. They figured out retail loses 51% of the time so they just did payment for order flow and kept the 1%
https://franknez.com/breaking-95-of-retail-orders-dont-go-through-lit-exchange/
Here's some more background on dark pools.
https://wire.insiderfinance.io/explained-dark-pools-vs-lit-pools-5e74912ccab6
Crime.
🦍🚀
There is this on TS explaining but I’m not a financefag to know if true, https://truthsocial.com/group/dwac/posts/112140033209380971 I just buy when it’s on sale.
because the system is rigged just like the casino, by them.
Well, well, well ... this stock is FINALLY interesting.
I have had no position in this the whole time, but now I put it on my watch list.
Reddit started trading yesterday, to a lot of fanfare.
TMTG/DJT(?) might do the same.
But will it soar?
The company loses A LOT of money, at least so far.
Not my cup of tea, but this is one that MIGHT shoot higher due to Trump's involvement, the election, and all the rest going on around Trump.
What everyone should hope for now is a single stock inverse ETF to be created for it.
This is where people can buy an ETF to short a stock, without actually shorting it themselves.
If they did that, you could tell all the libtards to buy the inverse ETF -- LOL.
Anyway, this move could give a boost to Trump's net worth, helping out his legal issues until he can finally get some honest judges to sort it all out. Looks like there is only one honest judge in the bunch right now -- the one in Florida.
I wonder if the biggest shareholder in DWAC voted in favor or against all these moves, including the one today.
Susquehanna is a VERY suspect company, IMO, and I wonder if they have been among those who have been trying to keep DWAC from merging. Anyone know?
By becoming the largest shareholder, they can have a lot of input in how shareholder votes go.
They also were a founding member of ByteDance, which owns TikTock.
Oh ... and the founders of Sus all or almost all seem to be from the same tribe.
Hence ... my curiosity.
🚀🌔💎🙌🏻
My DWAC shares are in a regular brokerage, so my plan is to sit on them long term (have already been holding since October ’21.
Unfortunately, my warrants are in my self-directed IRA, and I have no cash in the IRA to exercise them. I have 2,000 warrants, so I’m thinking that I’ll have to sell half of them, and use that $ to exercise the remaining half.
To the moon. DWAC will be the next black rock. They’ll buy black rock due to illegal activities causing them to force sell soon.
Please follow!
https://rumble.com/v3w838q-prove-my-hypothesis-by-death-cab-for-cutie.html
Is the vote a matter of public record?
IOW: Did the largest shareholders vote to approve or no?
I'm surprised DWAC did not moon today, Maybe Trump is making a withdrawl to cover his fine.
And one of the things on tbis last vote was to change the name .... to something something TRUMP
DWAC or TMTG/DJT?
DWAC is trading now, from what I see.
The new stock isn't trading, yet.
I bought a few with fidelity yesterday!
New ticker- DJT! Kek!
Ya baby!
WHATCHYA GONNA DO...
I own this and I've been too busy with personal issues to keep up. I have received letters in the mail but not sure I know what's going on. Where's the best place for me to read and catch up?
why are you laughing about this?
Maybe he gonna buy more now! I am!
i did lol