All tagged SPAC

What is DWAC? The Donald Trump SPAC

The last 18 months have been one of the most peculiar times in modern finance. From crypto surges and NFTs, to meme stocks and all-time market highs. In October, Digital World Acquisition Corp. (NASDAQ: DWAC), a SPAC, was yet another stock to experience a meteoric rise, and has joined the fray of peculiar financial securities, becoming one of the most popular ticker symbols on Reddit forum Wall Street Bets. However, DWAC has a uniquely political twist: It is the SPAC bringing public what will become (post-merger) the Trump Media and Technology Group, a firm created and being run by former President Donald Trump.

The Rise of SPACs

A new investment vehicle recently invaded markets, having a profound effect on traditional investing. A SPAC, or Special Purpose Acquisition Company, has drawn enormous attention in recent months. SPACs are becoming extremely popular with nearly everyone who has large sums of money and willing to invest. From NBA All-Star Shaquille O’Neal, to Republican giant Paul Ryan, to world-renown investor Bill Ackman, SPACs are a must have. According to Peter Atwater, founder of research firm Financial Insyghts, “If you don’t have your own SPAC, you’re nobody” (Ramkumar and Farrell, 2021). These new investment vehicles have uprooted traditional capital raising.