The publicly traded company that plans to merge with former president Donald Trump’s social media company is under investigation by two federal regulators, which have asked for stock trading information and communications.
Digital World Acquisition Corp. disclosed in a Securities and Exchange Commission filing that it had received “certain preliminary, fact-finding inquiries” from the Financial Industry Regulatory Authority in late October and early November regarding stock trading tied to the merger agreement announced Oct. 20.
Separately, the SEC asked for information related to meetings of the company’s board of directors, information on investors, and communications, according to the filing.
A special purpose acquisition company, or SPAC, is a shell company that is set up to take a private company public by merging with it. They are called “blank check” companies because public investors can purchase shares without knowing what the shell firm will eventually buy. For investors, the hope is that stock price will shoot up when an acquisition target is announced.
Trump, who’s been banned on Twitter and Facebook, announced in October that he was forming Truth Social platform to “stand up to the tyranny of Big Tech.” He and his political team had previously launched a blog called “From the Desk of Donald Trump.”
Digital World Acquisition Corp.'s stock went up by as much as 800 percent when it announced its venture with Trump’s social media company.
Digital World Acquisition Corp. disclosed in a Securities and Exchange Commission filing that it had received “certain preliminary, fact-finding inquiries” from the Financial Industry Regulatory Authority in late October and early November regarding stock trading tied to the merger agreement announced Oct. 20.
Separately, the SEC asked for information related to meetings of the company’s board of directors, information on investors, and communications, according to the filing.
A special purpose acquisition company, or SPAC, is a shell company that is set up to take a private company public by merging with it. They are called “blank check” companies because public investors can purchase shares without knowing what the shell firm will eventually buy. For investors, the hope is that stock price will shoot up when an acquisition target is announced.
Trump, who’s been banned on Twitter and Facebook, announced in October that he was forming Truth Social platform to “stand up to the tyranny of Big Tech.” He and his political team had previously launched a blog called “From the Desk of Donald Trump.”
Digital World Acquisition Corp.'s stock went up by as much as 800 percent when it announced its venture with Trump’s social media company.
