Wall Street debut of Trump's Truth Social network could net him stock worth billions on paper

The Truth Social account for former President Donald Trump is seen on a mobile device, Wednesday, March 20, 2024, in New York. Trumps Truth Social looks set to hit Wall Street in a move that could give him stock worth billions of dollars on paper. But the former president likely cant cash it out right away, unless some things change. – But the former president probably will not be able to cash it out right away, unless some things change.

For investors, SPACs offer a way to get into hyped, potentially faster-growing companies such as TMTG, the DraftKings betting service or SoFi banking.It happens, but only rarely. This vote looks likely to pass given how high Digital World’s stock has jumped on excitement about Trump. It was trading Thursday above $40 per share. It's already up roughly 140% so far this year, towering over the 10% gain for the S&P 500 index.

Investors under the lock-up deal cannot sell, lend, donate or encumber their shares for six months after the close of the deal. Legal experts say “encumber” is a powerful word that could prevent Trump from using the stock as collateral to raise cash before six months have elapsed. But if the value of Trump’s brand is key to the company’s success, and if easing the lock-up agreements could preserve that brand, it could make for a case that would at least spare board members' lawyers from getting laughed out of court immediately.

One risk, the company said, was that as a controlling stockholder, Trump would be entitled to vote his shares in his own interest, which may not always be in the interests of all the shareholders generally.

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