Why Digital World Acquisition Stock Popped 34% in July
Shares of Digital World Acquisition (NASDAQ: DWAC) climbed 34% in July, according to data provided by S&P Global Market Intelligence, after the special purpose acquisition company (SPAC) aiming to take former president Donald Trump's social media company public settled fraud charges with the Securities and Exchange Commission (SEC).
The entirety of the SPAC merger vehicle's gains came on July 21, when shares soared more than 40% following the settlement with the SEC.
A filing by the agency had revealed that company executives were found to have held "extensive SPAC merger discussions with [Trump Media Technology Group] several months before filing the paperwork to go public in late 2021." That contradicted Digital World's statements that it had not solicited a specific merger target prior to filing for its own IPO, a practice prohibited by the SEC.
Source Fool.com
