Marjorie Taylor Green invested up to $50,000 in Trump SPAC before its stock plunged
The disclosure form, dated Tuesday, indicates that Greene purchased between $15,001 and $50,000 of the stock. The model doesn’t show what price Greene got in the stock, but she likely lost her money on the deal, at least on paper.
Last week, the Trump Media and Technology Group, chaired by the former president, said it would launch a new social media platform “to stand up to the tyranny of big tech.”
Digital World’s shares quadrupled on the first day of trading after the deal was announced. By Friday, the price of Trump SPAC rose to $175, a staggering 1,657% above Wednesday’s closing price.
But the march quickly faltered. Digital World fell 11% on Monday and then lost 30% on Tuesday. It is currently trading at around $65 – two-thirds down from last week’s high.
It’s not clear how much Green has lost so far in Trump’s SPAC bet.
On Greene’s trading day, Digital World Acquisition Corp traded in a very wide range between $67.96 and $175. At best, investment will be slightly in the red compared to current trading levels.
stock trading in congress
“I don’t think members of Congress should be allowed to trade in individual stocks — Trump stock or otherwise — as a matter of good moral policy,” said Norm Eisen, a CNN legal analyst and fellow in governance studies at the Brookings Institution. institution. “This is because the nature of their work can affect their investment.”
“It opens up questions like: Does she constitute her opposition to the January 6 committee to polish the Trump brand and increase the value of its stock?” Eisen said. “We shouldn’t [have to] Ask these kinds of questions.”
Trump bankruptcy history
IPO watchers said the spike was very unusual — especially because so little is known about the Trump project.
The most recent filings do not indicate how much revenue, if any, is generated by Trump Media & Technology Group. But it’s likely to be minimal because the new social media platform has yet to be launched.
SPAC merger announcements usually contain financial projections and details of the planned capital structure. None of that, however, was included in the Trump deal, offering investors a press release criticizing Big Tech and a presentation to investors without revenue estimates.