Truth Social going public net Trump estimated 2 to 4 BILLION

[SunsetBengal]

(03-23-2024, 05:26 PM)pally Wrote: stock is not usually considered acceptable collateral for a loan.  You can say what the value is today but cannot when the loan or bond is defaulted on

Sure it's not.. 

https://www.moneylion.com/learn/can-you-use-stocks-as-collateral-for-a-loan/#:~:text=As%20long%20as%20the%20assets,can%20be%20used%20as%20collateral.

Quote:How does using stocks as collateral work?

To take out a stock collateral loan, the lender will review the value of your stock portfolio and approve you for a funding amount accordingly. It is likely to also consider additional factors, such as your credit score and income level. 
Most of the time, you’ll only be able to borrow up to 50% of the value of your stock portfolio. If you have $10,000 in stocks, for example, most lenders won’t approve you for a loan worth more than $5,000. However, exceptions exist in certain cases. 
Once the lender approves you for the loan, you’ll receive the lump sum amount and make payments according to the agreed terms. In other cases where you want to take out a stock collateral loan, you’ll need to transfer ownership to the lender, who will own the stocks during the life of your loan. 
A loan with stock as collateral is known as a security-based loan, a stock-based loan, or a stock collateral loan. 
How to get a loan using stocks as collateral
Using stock as collateral for a loan can mean several different things. Take a look at the two most common scenarios.  
1. Margin
When you trade on margin, you borrow money from a broker to make an investment, while using that investment as collateral. This strategy is used by many professional investors to effectively own more stock without having to pay for all of it. 
The idea is that if the stocks increase in value, investors will be able to repay their debt and keep some for themselves. Unfortunately, this strategy comes with significant risk, and the potential for loss can be great. 
2. Security-based lines of credit
A security-based line of credit is offered by your stockbroker or bank. It will review the value of your stock portfolio and approve you for a credit line, typically up to 50% of your stock portfolio’s value. 
You’ll be able to withdraw from your approved credit line as you need. Plus, you’ll only need to pay interest on the amount you borrowed. 
Pros and cons of using stocks as collateral 
Like most financing options, you’ll find pros and cons to using stocks as collateral. Take a look at how these choices compare to understand whether a stock collateral loan is a good solution for you. 
Advantages

• Improve your chances of getting approved for a loan
• Help you access better interest rates
• Increase your potential funding amount for a loan 
• Use funds for whatever means you deem fit 
  

Disadvantages

• You’ll usually only receive 50% of the full value of your portfolio instead of the full value. 
• Since the value of your assets could fluctuate, you could owe more money than you’ve borrowed. 
• If you’re unable to make payments on your loan, your lender can liquidate your stock to recover their funds. 
  

[NATI BENGALS]

(03-23-2024, 08:20 AM)Luvnit2 Wrote: Actually, his deal is he does not have to wait the 6 months and can borrow immediately. If he has 3 billion in shares, likely can borrow 20 to 30% immediately.

20% of 3 billion is 600 million. 

But, I hope he plays chicken and allows James to go after his home in NY. As I said, she goes after his properties. Lutz says Trump wins the election.

That’s not what I saw. Lock up period is 6 months. I did hear a new twist last night though that I was unaware of. The board can vote and grant a waiver or special exception, forget what word they used, to let Trump sell prior to the expiration of the lock up.

That would mean they let him dump the shares while they are stuck holding. So I don’t know who would vote for that. Of course I assume he is on the board and has voting power himself and probably a lot of it. So I could see it happening. The other board members wouldn’t be happy. But who doesn’t get screwed over when doing business with Trump?

[NATI BENGALS]

(03-23-2024, 05:36 PM)SunsetBengal Wrote: Sure it's not.. 

https://www.moneylion.com/learn/can-you-use-stocks-as-collateral-for-a-loan/#:~:text=As%20long%20as%20the%20assets,can%20be%20used%20as%20collateral.

https://www.forbes.com/sites/zacheverson/2024/03/23/why-trump-cant-pledge-his-truth-social-shares-even-after-it-goes-public/

“The merger agreement bars Digital World's sponsors and Trump Media's shareholders, including Trump, from selling their shares for six months after the deal. The company's charter also explicitly prohibits pledging these locked-up shares for use as collateral for obtaining a loan or bond.”

[SunsetBengal]

(03-23-2024, 05:42 PM)NATI BENGALS Wrote: https://www.forbes.com/sites/zacheverson/2024/03/23/why-trump-cant-pledge-his-truth-social-shares-even-after-it-goes-public/

“The merger agreement bars Digital World's sponsors and Trump Media's shareholders, including Trump, from selling their shares for six months after the deal. The company's charter also explicitly prohibits pledging these locked-up shares for use as collateral for obtaining a loan or bond.”

That is a specific condition to a specific situation, and very unlike someone issuing a self assessed blanket statement like "stocks aren't typically accepted as loan collateral", wouldn't you say?

[NATI BENGALS]

(03-23-2024, 05:46 PM)SunsetBengal Wrote: That is a specific condition to a specific situation, and very unlike someone issuing a self assessed blanket statement like "stocks aren't typically accepted as loan collateral", wouldn't you say?

Yes

Lot of factors involved. In a brokerage margin account I could see stocks being used as collateral all the time. Outside of that I would assume it would be pretty rare considering the volatility of the value. But idk.

In this instance. Finding a bank to accept shares of DJT at its current overinflated value.. for a cash loan. Sheesh. Whoever approves that loan better be retiring the next day.

One talking head said when compared to the number of active users on Twitter fair market value for DJT is under $1.00

[Luvnit2]

(03-23-2024, 05:26 PM)pally Wrote: stock is not usually considered acceptable collateral for a loan.  You can say what the value is today but cannot when the loan or bond is defaulted on

Let's see if it is. 

Sorry, he can sell it off as well immediately. 

[Luvnit2]

(03-23-2024, 05:38 PM)NATI BENGALS Wrote: That’s not what I saw. Lock up period is 6 months. I did hear a new twist last night though that I was unaware of. The board can vote and grant a waiver or special exception, forget what word they used, to let Trump sell prior to the expiration of the lock up.

That would mean they let him dump the shares while they are stuck holding. So I don’t know who would vote for that. Of course I assume he is on the board and has voting power himself and probably a lot of it. So I could see it happening. The other board members wouldn’t be happy. But who doesn’t get screwed over when doing business with Trump?

He had it in his agreement if the stock went pubic. 

[Luvnit2]

(03-23-2024, 05:38 PM)NATI BENGALS Wrote: That’s not what I saw. Lock up period is 6 months. I did hear a new twist last night though that I was unaware of. The board can vote and grant a waiver or special exception, forget what word they used, to let Trump sell prior to the expiration of the lock up.

That would mean they let him dump the shares while they are stuck holding. So I don’t know who would vote for that. Of course I assume he is on the board and has voting power himself and probably a lot of it. So I could see it happening. The other board members wouldn’t be happy. But who doesn’t get screwed over when doing business with Trump?

Wat does the board care how many shares Trump owns? They care if he is the #1 user and being followed on the platform. He is not leaving Truth Social platform, just may need to sell his shares so he can appeal NY case with the kangaroo court. I have no doubt Trump wins on appeal and in the end sues NY for all his losses. 

[NATI BENGALS]

(03-23-2024, 08:06 PM)Luvnit2 Wrote: Wat does the board care how many shares Trump owns? They care if he is the #1 user and being followed on the platform. He is not leaving Truth Social platform, just may need to sell his shares so he can appeal NY case with the kangaroo court. I have no doubt Trump wins on appeal and in the end sues NY for all his losses. 

Um because they own shares too. I assume they go to work to make money. So when the big guy starts dumping shares driving the price down. The rest of the board who I imagine would be large share holders see the value of their stake plummet while they are stuck holding during 6 month lock up period.

Saw something that said he had like 88 million followers on twitter. And has 8 million on truth.

[NATI BENGALS]

(03-23-2024, 08:03 PM)Luvnit2 Wrote: He had it in his agreement if the stock went pubic. 

I haven't seen anyone claim that but you. Every source I see says otherwise.

[GMDino]

(03-23-2024, 08:03 PM)Luvnit2 Wrote: He had it in his agreement if the stock went pubic. 

You think he read the agreement?

[Luvnit2]

(03-23-2024, 09:02 PM)NATI BENGALS Wrote: Um because they own shares too. I assume they go to work to make money. So when the big guy starts dumping shares driving the price down. The rest of the board who I imagine would be large share holders see the value of their stake plummet while they are stuck holding during 6 month lock up period.

Saw something that said he had like 88 million followers on twitter. And has 8 million on truth.

Who has more followers on Truth Social? Simple answer is they do not exist. Donald Trump built Truth Social, without him there is no Truth Social.

It is the board's job to get more followers, not Donald trump. If they are that concerned, they should post his bond and he can keep his shares.

Trump made a lot of people rich, a legitimate business in the open. No shell companies, full transparency.

Maybe time for Democrats to admit, Trump is a financial wizard personally and also handling our country's economy. He understands the lower and middle class, Biden and Democrats do not. They have all of the eggs in the go after Trump basket and anyone not a Democrat does not like it. 

[Luvnit2]

(03-23-2024, 09:03 PM)NATI BENGALS Wrote: I haven't seen anyone claim that but you. Every source I see says otherwise.

You are one of the brighter liberal posters in this forum.

Do you think if James ends up stealing Trump's properties it will be a good thing for the Democrats in November?

I am on record, I hope she seizes (steals assets), I think it will kill NY in the long run financially and I think voters will realize if the government can do this to a former POTUS and GOP nominee in 2024, they can do it to them. They can come along and steal their life savings, no jury, just a prosecutor and a judge. 

[NATI BENGALS]

(03-24-2024, 01:44 PM)Luvnit2 Wrote: You are one of the brighter liberal posters in this forum.

Do you think if James ends up stealing Trump's properties it will be a good thing for the Democrats in November?

I am on record, I hope she seizes (steals assets), I think it will kill NY in the long run financially and I think voters will realize if the government can do this to a former POTUS and GOP nominee in 2024, they can do it to them. They can come along and steal their life savings, no jury, just a prosecutor and a judge. 

You're asking the wrong guy.

I'm a big fan of harsher consequences for white collar crime.

This guy got a life changing handout and went on to make a fortune with a whole bunch of bankruptcies. Reached stardom for a tv show with him firing people. He represents many of the worst problems with the two tiered justice system where the wealthy well connected get to skate, while the less privileged usually get railroaded. 

Why in the world would I want some rich asshole who built a fortune bankrupting businesses and firing people to skate when justice final catches up to him for being a fraud?

[*pally*]

(03-24-2024, 01:44 PM)Luvnit2 Wrote: You are one of the brighter liberal posters in this forum.

Do you think if James ends up stealing Trump's properties it will be a good thing for the Democrats in November?

I am on record, I hope she seizes (steals assets), I think it will kill NY in the long run financially and I think voters will realize if the government can do this to a former POTUS and GOP nominee in 2024, they can do it to them. They can come along and steal their life savings, no jury, just a prosecutor and a judge. 

Where have you been? Poor and middle-class people have their property seized by court judgment every day!  If it can happen to them why in the world shouldn't it happen to a man whose net worth is bolstered by his fraudulent acts?

People's assets have been subject to seizure to settle court judgments since the beginning of this country. Property liens are a time-honored collection method.  n fact my home is subject to lein if I fail to pay my homeowners association dues.  Millions of poor people are subject to paycheck garnishment each and every day.

Someone arrested, but not yet found guilty, can have their property seized by law enforcement if they have "probable" cause (which is often loosely enforced) that a crime may have been committed to obtain that asset.

Why should rich people be exempt from legal actions that ALL Americans are subject to?

Can't do the time don't do the crime!!!!

[Arturo Bandini]

4 billions for a platform which has no other added value but to host some CAPS LOCK rants from an only individual is a bit overpriced if you ask me.

[GMDino]

(03-25-2024, 10:05 AM)Arturo Bandini Wrote: 4 billions for a platform which has no other added value but to host some CAPS LOCK rants from an only individual is a bit overpriced if you ask me.

It has high value as a money laundering scheme or to a foreign asset that wants to "invest" and get on the good side of the former POTUS.

[*pally*]

(03-25-2024, 10:21 AM)GMDino Wrote: It has high value as a money laundering scheme or to a foreign asset that wants to "invest" and get on the good side of the former POTUS.

Pump and dump

[GMDino]

(03-25-2024, 10:43 AM)pally Wrote: Pump and dump

Which is why that six month hold is so important.  Also why I'm sure Trump will find a way to skirt the rules.

[Luvnit2]

Your liberal tears take me back to Trump winning in 2020. You would applaud a Democrat going from being bankrupt to a multi billionaire.

Trump is a great businessman. I started my career working for a man who tried 3 different businesses. He sold his 42 restaurants for 60 million dollars in 1978. At age 70, he started another business inventing the tool the police use to stop vehicles, made millions more.

I am sure you think he is a loser also, but for the over 25,000 employees he provided great jobs and great opportunities for advancement would disagree. A few of us went from employees to owning restaurants. Another went on to Chucky Cheese to own 12 stores.

How many employees do you think Trump has given careers to over the years?

How about Joe Biden, how many jobs has he given people while taking kickbacks from Ukraine, China, Russia and others? What business product did the Bidens sell to get over 25 million from these countries?

The world knows the answers, the world know Biden lied over and over again in his 2020 campaign and continues to lie. The court of public opinion finds Biden guilty; the court of public opinion finds the DOJ guilty persecuting Trump and refusing to go after Biden and his family for FARA violations.

I don't hate Biden. If he gets elected the sun will come up again. I fear for some in here and in the Democratic party. Some will need to go on suicide watch. Oh, and the tears will be flowing. Biden is running out of time to fix immigration, fix the economy and fix the war in Gaza.