In an exciting development for supporters of former President Donald Trump, Truth Social, a social media platform developed under Trump Media & Technology Group, now trades under the ticker symbol DJT on the NASDAQ and is accesssible through brokers such as eToro. In this guide we will look at how to buy Truth Social stock, as well as go through the risks involved in trading the stock.
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What is Truth Social?
Trump Media & Technology Group (TMTG) was listed on the NASDAQ under the ticker DJT in March 2024 though a merger with Digital World Acquisition Corp. (DWAC), a shell company or SPAC, created to take a private business public without going through an initial public offering (IPO).
Fun fact!
What is a SPAC?
A SPAC is a shell company without commercial operations established to raise capital through an initial public offering to acquire or merge with another business. In fact, the only tangible asset is the capital from the IPO.
The funds raised in an IPO are allocated to an interest-bearing trust account that will be paid out only to complete an acquisition or to return the funds to investors if the SPAC is liquidated (if the acquisition isn’t completed within two years).
After a merger is completed, investors in the SPAC can choose to convert their shares into shares of the newly merged company. Or, they can redeem their SPAC shares to get back their original investment plus any interest accrued while the money was in trust.
Truth Social IPO
Truth Social, operating under the parent company Trump Media & Technology Group, went public by merging with Digital World Acquisition Corp., a Special Purchase Acquisition Company, bypassing the traditional IPO process. This move introduced TMTG’s Truth Social platform to the stock market under the DJT ticker symbol. The merger was a strategic choice, allowing TMTG to quickly become a publicly traded company with fewer regulatory hurdles.
Step-by-step process on how to buy Truth Social stock
Truth Social is a publicly traded company, meaning you can buy DJT stock through a broker. The steps involved in purchasing DJT shares are outlined in the following section in detail.
Step 1: Choose a broker
To buy DJT stock online, you’ll need a brokerage account. Several platforms are available, but the right one will depend on your investment style (long-term buy-and-hold strategy or active day trading) and needs (e.g., whether you want to trade more advanced financial products such as options). When evaluating brokers, consider the following features:
- Fees: Brokerage fees is a type of fee collected by brokers to execute your transactions or provide specialized services. However, today, the vast majority of online brokers offer commission-free stock and exchange-traded funds (ETF) trading;
- Security: Pick a reliable broker by ensuring it is fully licensed by state regulatory authorities as well as FINRA and registered with the SEC;
- Trading tools: Active traders may want more out of their brokerage accounts. Some brokers offer fully customizable platforms with comprehensive analysis tools or access to additional data for an extra cost. If such additions are unnecessary for your purposes, avoid paying extra for them. It’s usually a good idea to look for an easy-to-use platform with a competitive fee structure if you are new to stock trading. A dedicated section with investing tips and tricks is a bonus;
- Access to market data: You should search for a platform that gives you access to solid market research and reporting tools to help you trade confidently with updated data;
- Fractional stock trading: Fractional shares allow investors to buy stock or ETFs by the dollar amount instead of the number of shares; particularly helpful for investors who don’t have limited capital but want to build a diversified portfolio or are looking to set up a dollar-cost averaging strategy.
Also, traders can opt for online, full-service brokers or discount brokers, as well as robo-advisors.
Where to buy Truth Social stock?
Access to the financial markets is easy and inexpensive, thanks to various online brokers. However, choosing the right broker optimized for your needs (investing goals, educational tools, trading style) is paramount for a successful trading experience.
To securely invest in truth social and buy DJT stock, consider eToro, a fully regulated retial broker, offering the following features:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- Limited margin accounts;
- Charting tools;
- A user-friendly platform that simplifies the trading experience.
Highly Rated Stock Trading & Investing Platform
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 2: Fund your account
Once you have selected a broker, the next step is funding your trading account. Remember, it can sometimes take up to three days for the funds to be deposited.
Step 3: Decide how much you want to invest
After you’ve done your research and determined that DJT stock is the right choice for you, you’ll need to decide how much you want to invest.
The amount of money you invest ultimately depends on the price and number of shares you want to buy. If the share prices of stocks you’re interested in are financially out of reach, you can also explore fractional shares. Fractional shares allow you to purchase a portion of a stock instead of the full share.
Because investing can have unpredictable returns, it’s crucial only to invest what you can afford to lose and to be mindful of your risk appetite.
Step 5: Place your order and buy DJT stock
Once you decide on the number of shares or the dollar amount you’d like to purchase, you can place your order. If you’re working with an advisor, tell them you’d like to buy DJT stock and how much you can invest, and they’ll do it for you. If you’re using a brokerage account, simply log in and enter the ticker, DJT in the search bar.
Tip
There are a few different execution options to choose from, including:
- Market order: A market order is an order to buy the stock at the current market price that is generally executed immediately (subject to availability);
- Limit order: A limit order is processed once the stock reaches your specified price.
Tip
DJT stock price today
Common mistakes to avoid when investing in stocks
Mistakes are expected when investing in stocks but can be avoided if you recognize them. For an in-depth guide on investing mistakes, we have compiled a list of 17 common mistakes and tips for preventing them. But, for now, let’s list some of the most typical ones:
- Not performing your due diligence on the stock;
- Having unclear financial goals;
- Attempting to time the market;
- Failing to diversify;
- Letting your emotions rule the investment decision-making process.
How to sell DJT stock?
You can sell DJT stock if you see the company performing differently than you’d expected or if you’ve reached the financial goal you set when you first invested in the company.
If you’re working with an advisor, they can create a sale order for you. However, if you have your own broker account, you can simply log on, navigate to the stock’s detail page, input the number of shares or dollar amount you want to offload, and tap sell.
Pros and cons of buying truth Social stock
So, now that we’re familiar with DJT and how to buy its stock, let’s explore both the pros and cons of investing in it.
Pros
- Successful IPO: DJT attracted significant investor interest, leading to a very successful IPO. This initial success indicates strong market enthusiasm and confidence in the platform’s potential, reflecting positively on its perceived value and growth prospects;
- Truth Social is a hit with users: Despite the scalability issues plaguing TMTG’s flagship product and problems with the roll-out, the app is highly rated, boasting an average rating of 4.5/5 on the App Store;
- Trump is standing by Truth Social: Even though Trump has been invited to rejoin Twitter, he seems dead-set on staying with his own social networking app. Only the future will tell if Trump’s stance changes, but for now, Truth Social is still benefiting from having him as their figurehead.
Cons
- Volatility risk: Regardless of how you feel about him, Trump is the face of Truth Social and therefore has a sizable influence on DJT stock. So, given Trump’s penchant for controversies and impulsive behavior, the stock is expected to suffer under considerable volatility;
- Monetization challenges: New social media platforms often face challenges in monetizing their user base effectively;
- Content moderation challenges: Balancing free speech with the need to moderate harmful or misleading content is a significant challenge for social media platforms. Failure to effectively manage this balance can lead to public backlash, legal issues, and loss of users;
- Regulatory and legal risks: Companies operating in the social media space often face significant regulatory scrutiny, especially those associated with high-profile individuals. Potential legal challenges and changes in regulations can impact operations and financial health.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Truth Social stock
What is DWAC?
DWAC is a special purpose acquisition company or SPAC created to provide initial funding for Trump Media Technology Group (TMTG) and eventually take them public.
How to buy Truth Social stock?
To buy DJT stock, you should first choose a brokerage with NASDAQ access, open and fund your brokerage account, search for Trump Media & Technology Group under the ticker DJT, and place a buy order for the stock, either as a market order to buy at the current price or a limit order to specify a maximum price.
Where can I buy DJT stock?
You can buy DJT stock at various online brokers such as eToro.
Is Truth Social a public company?
Yes, Truth Social went public in March 2024 after receiving approval from shareholders.
Does Trump own DWAC?
Donald Trump does not own Digital World Acquisition Corp. (DWAC). DWAC is a special purpose acquisition company (SPAC) that entered into an agreement to merge with Trump Media & Technology Group (TMTG), the parent company of Truth Social, a social media platform launched by Trump. Trump’s involvement is primarily through his role in TMTG, where he is a key figure, rather than ownership of DWAC itself. DWAC was created as a financial vehicle to take companies public, including its planned merger with TMTG.
What is the Truth Social stock called?
The stock directly associated with Truth Social doesn’t trade under its own name under its parent company Trump Media & Technology Group. It is listed on the NASDAQ under the ticker DJT.
What is Donald Trump's social media company?
Donald Trump’s social media company is called Trump Media & Technology Group (TMTG). Its flagship platform is Truth Social, a social media service launched by Trump.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
