$Trump Media & Technology(DJT)$ So the stock price jumps because DJT is getting cash from warrant exercise? I really wonder if retail investors realize how this works?
DJT accepts about $12 and issues a newly minted share of stock worth $35 to the warrant holder, increasing the outstanding shares and diluting each holder's stake.
Shareholder lose $23 per converted share through dilution.
So the company picks up 270 million cash at a share cost of 500 million.
That's some expensive cash. I wonder how many of those warrants are owned by the insiders. [Sad][Sad][Sad][What]
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