DWAC, the Trump Social-Media SPAC, Under SEC Probe: What to Know

What is DWAC?

Digital World Acquisition Corp. is a special-purpose acquisition company, or SPAC. It is essentially a pot of money raised from investors with the intention of finding a private company to buy. In this case, DWAC completed its initial public offering in September when it started trading under the ticker DWAC. In late October, Trump Media & Technology Group, former President Donald Trump’s new digital-media venture, said it would combine with DWAC.

Hundreds of SPACs have been launched in the past two years, tapping into two market trends: investor enthusiasm to buy anything, and a flood of private startups looking to hit the public markets.