Former President Donald Trump is on the cusp of scoring a major financial bonanza – at least on paper.
As long as Trump Media & Technology Group’s share price doesn’t spectacularly implode before Tuesday’s closing bell, Trump is on track to receive another 36 million shares as the owner of Truth Social.
This milestone is on track to be hit after the market closes on Tuesday.
Even though Trump Media is losing money and Truth Social is very tiny, those new shares Trump is in line to receive would be valued at about $1.3 billion at current prices.
Trump’s net worth has been on a roller coaster ride ever since his social media company finalized its deal to go public late last month. The former president is the dominant shareholder in a stock that has been called a “meme stock on steroids.”
Does current value take into account the amount of people will to buy at a certain price? Like, if people are buying at $49 per share, the value should be $49. But what if that’s only for 10,000 shares? Those shares are worth 500,000. But then if the next people are only willing to buy for $20 per share, that’s the new value.
But if they’re looking at how much 1,000,000 shares are worth, are they looking at current buying price or how much people are willing to pay for 1,000,000 shares?
In a functional stock market price is dictated by supply and demand… we no longer have that.