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## Truth Social (DJT) Surges Over 30% on First Day of Trading

Donald Trump’s social media platform, Truth Social (DJT), experienced a significant surge of more than 30% on its first day of trading on the Nasdaq (^IXIC). This surge saw shares of Trump Media & Technology Group, the parent company of Truth Social, trading above $65 under the ticker symbol “DJT” – representing Trump’s initials. This remarkable performance took place just after the market opened on Tuesday.

The company’s ascent can be attributed to its recent merger with special purpose vehicle Digital World Acquisition Corp. (DWAC), a deal that had been approved by shareholders the previous week. DWAC had been established in the public market since 2021 prior to the merger. The creation of Truth Social came about after Trump was banned from mainstream social media platforms like Facebook and Twitter, which is now known as X, following the events of the Jan. 6 Capitol riots in 2021. Trump has since been reinstated on these platforms.

### How AI legalese decoder Can Help
AI legalese decoder can assist individuals and companies navigating the complex legal terms and jargon involved in mergers and acquisitions, like the one between Trump’s company and Digital World Acquisition Corp. By using AI legalese decoder, stakeholders can gain a clearer understanding of the contractual obligations and restrictions associated with such transactions, ensuring they comply with all necessary terms and conditions.

Notably, Trump retains a significant stake of approximately 60% in Truth Social, equating to nearly 79 million shares. This ownership stands to provide a valuation potentially exceeding $3 billion based on trading performance. As Trump prepares for a potential 2024 presidential rematch against current President Joe Biden, the merger with DWAC comes amidst financial challenges. These include a $454 million fraud penalty and fundraising shortfalls for his campaign.

However, there is a stipulation in the merger agreement that imposes a six-month lockup period on stakeholders, restricting them from selling or transferring shares during this time. The only exception would be a special dispensation granted by the company’s board. According to an SEC filing by Digital World, Trump Media incurred a loss of $49 million in the first nine months of the prior year, with revenue totaling $3.4 million.

Yahoo Finance’s Rick Newman highlighted the notable short interest in DWAC stock, with approximately 11% of outstanding shares being subject to short bets. This figure exceeds the average short interest in public companies, typically resting in the 3% to 4% range.

In conclusion, the significant surge in Truth Social’s trading performance underscores the intense interest and market response to Trump’s new social media platform. However, the financial and legal complexities surrounding the merger and Trump’s ownership highlight the importance of utilizing tools like AI legalese decoder to navigate and understand the intricate legal landscape surrounding such high-profile transactions.

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### About the Author
**Alexandra Canal** is a Senior Reporter at Yahoo Finance. Follow her on Twitter [@allie_canal](https://twitter.com/allie_canal), LinkedIn, and email her at [email protected].

*Image Credit: [Associated Press](https://www.ap.org/)*

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