Trump SPAC Investing

Anyone who reads Finance Gourmet on a regular basis knows that the new Trump SPAC isn’t the kind of thing I’m going to analyze, let alone recommend investing in. But, for some bizarre reason, I keep get some questions, so here is some really quick Trump SPAC company facts.

What Is a SPAC?

SPAC stands for Special Purpose Acquisition Company. It is sometimes called a blank-check firm. It’s a weird setup where a company that is a publicly traded company buys a private company, thereby acquiring its business and making it a publicly traded company without having to go through the official IPO process.

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What Is Trump’s SPAC?

In this case, Trump Media & Technology Group, which has no products, no revenues, and no profits. Is merging with already publicly traded company called Digital World Acquisition Group. Now, Trump Media & Technology Group can be publicly traded.

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Why Is Trump’s SPAC rising so much?

If you remember earlier this year when numerous investors piled into AMC in part as some sort of crusade to stick it to the man, then you have some idea of what is going on here. Investors, some old, some brand new, are buying shares as a way to support Trump. As a result, the stock price is going up. How high it goes, and how long it stays there depends on the investors and how much they are willing to leave their money in the stock. Since the reasons for buying have nothing to do with how the company performs financially, the reasons for selling (or not) likely will not either.

As such, this is not an investment. It’s a gamble with a side of flag waving.

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The Author

By Brian Nelson – Brian is a former Certified Financial Planner and financial advisor. He writes for the Finance Gourmet and other financial publications. The material provided on this website is for informational use only and is not intended for financial or investment advice. At the time of publication, Mr. Nelson did not own any securities mentioned above, however, that may change at any time without notice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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