One of the first rules about investing is try not to lose money. There are numerous methods to lose money, which is why if something is hot and you have to invest this minute or you lose out, 99% of the time you should wait. The other 1%, some will actually make money, but most of the time you will or should learn from your mistakes. Saying no is a good thing for investors to learn.
One of the hot investments was a special purpose acquisition company or SPAC. A pool of capital was raised and investors expected the managers to search out and find companies to buy and grow larger. The rules and regulations were loose, the vehicles were hot and some offerings went up in price, till the market changed and most or 99% are trading under the offering price.
In an article by Mathew Goldstein of the New York Times News Service, one of the companies which raised money was Digital World Acquisition Corp and it merged with Trump Media and Technology Group in October.
The Securities and Exchange Commission, because former President Trump is the Trump and the high profile of the company is examining the surge in trading of Digital World warrants before the merger announcement. Companies have to allow shareholders similar information before insiders can trade. When volumes increase, the expectation is people traded on inside information. The issue is why did investors make the decision to buy?
Former President Trump posts on Trump Media’s Truth Social.
Linking to dividend paying stocks, these companies tend to be profitable over the long term, given the capital gain and dividend to make up the total return. We all want to get rich overnight, however often times the riches disappear as quickly as they came in. The proven method is over a long time and using the power of compound interest, you will be rewarded and keep your money.
There are more questions than answers, till the next time – to raising questions.