Donald Trump stands to reap a windfall of $3 billion or more after Digital World Acquisition Corp. shareholders voted to merger with his social media company.
As someone who knows nothing about the stock market, wouldn’t he still get his 3bn and everyone else would be fucked? I assume the price would fall after he sells no?
Imagine you own an orange tree, and you want to sell the oranges. If you run out and try to sell oranges, people will low ball you. What you really hope for is people wanting to buy oranges, and you try to sell then as quickly as they ask for then, or a little slower in order to drive the price up per orange due to demand making people offer more.
This is like trump owning x number of oranges, and saying they’re worth a certain amount per orange, so it is worth that amount times x. In reality, he only has shares he can sell, and there is the assumption he can sell them.
Stock sales are kinda weird when youre talking about large sales like that, because some will hit the dark pools making them less likely to affect the price.
However, that is usually reserved for institutions, not private sales.
On top of that, youd have to assume that only one sale would occur, and he wouldnt need to piecemeal his transactions by selling blocks of shares instead of the whole lot.
Its really tough to predict, but id like to imagine nobody even wants his POS company.
As someone who knows nothing about the stock market, wouldn’t he still get his 3bn and everyone else would be fucked? I assume the price would fall after he sells no?
Imagine you own an orange tree, and you want to sell the oranges. If you run out and try to sell oranges, people will low ball you. What you really hope for is people wanting to buy oranges, and you try to sell then as quickly as they ask for then, or a little slower in order to drive the price up per orange due to demand making people offer more.
This is like trump owning x number of oranges, and saying they’re worth a certain amount per orange, so it is worth that amount times x. In reality, he only has shares he can sell, and there is the assumption he can sell them.
Stock sales are kinda weird when youre talking about large sales like that, because some will hit the dark pools making them less likely to affect the price.
However, that is usually reserved for institutions, not private sales.
On top of that, youd have to assume that only one sale would occur, and he wouldnt need to piecemeal his transactions by selling blocks of shares instead of the whole lot.
Its really tough to predict, but id like to imagine nobody even wants his POS company.