Here’s How to Buy Twitter Stock Now

One hard to hear tweets since 2017 has now become a reality; Elon Musk will soon become the owner of Twitter.

This comes after weeks of back and forth when Musk bought a large chunk of the company’s stock and then forced the board to take a ‘poison pill’ to avoid a hostile takeover. Musk has been very public about his displeasure with Twitter’s board of directors and is adamant about changing the platform. He mentioned going back to content moderation and implementing the largely required edit button on published tweets.

To make those changes, he plans to take the company private, which means that if you actively hold shares of Twitter, you have a definite interest in a potential acquisition.

Choose in detail how you can buy Twitter stock before it goes private and what happens to your stock once the transaction is complete.

As of now, Twitter is still a publicly traded company on the New York Stock Exchange. This means that for around ~$40 (approximate stock price) you can own a fraction of the social media giant.

However, once Musk makes good on his promise to take the company private, the ability to buy more stock is gone. But even though the deal was done today, you can still buy or sell Twitter stock until the deal closes.

Dan Raju, CEO of Tradier, tells Select what Twitter shareholders should keep in mind:

• If the deal is done today, that doesn’t mean you can’t continue to buy and sell shares. However, he strongly believes that the stock price may become “volatile” between the time of announcing the deal to officially delist the shares.

• Raju said it will take “weeks rather than days” before it is delisted from the NYSE and it is “difficult to predict” how long the regulatory process will take.

• His analysis says that buybacks are “good for the stock” and that traders may look to call options as a way to bet on a positive reaction if a deal goes through.

So if you want an ownership stake in Twitter’s future before it goes private, you’ll need to open a brokerage account to buy and hold your shares. Free account opening with brokers like Fidelity, Robinhood or Vanguard, allowing you to buy and sell stocks for free.

From there, simply connect a checking account to transfer funds for the purchase. Finally, look for the code icon for Twitter, which is “TWTR” and click the buy button. You can also indirectly own shares of Twitter through ETFs and index funds, which are portfolios of companies compressed into easy-to-buy shares. For example, the widely known S&P 500 index includes just over 500 companies, and Twitter is one of them.

Be aware, however, that buying individual stocks, including Twitter, can be risky – buying Twitter stock above $54.20 could result in a loss.

What happens to your Twitter stock when it becomes private

Whether you hold one stock or thousands of shares, you will receive an ‘offer to buy’. This means that the new owner is buying your shares from you, often at a premium.

For example, let’s say you bought 50 shares for $33.84 on January 27, 2022, for a total price of $1,692. Musk is paying $54.20 per share, which means you’ll get an offer of $2,710 for the 50 shares you own.

Lauren Anastasio, Director of Financial Advisory and CFP at Stash, told Select what the shareholder options are if the deal goes through:

“They can do a public tender…or if privatization takes place, they’ll still be cashed in for the value of the stock at that point. So either way, they won’t be left behind. It’s not like their shares are worthless anymore, they’ll just be bought back as part of the privatization process.”

And keep in mind that if you receive cash in exchange for stock, this is considered a taxable event.

“Depending on how long you’ve owned Twitter stock, you’ll be subject to either short-term capital gains or long-term capital gains as the bidding progresses. You should consult a tax professional before making a decision. the same decision as before any transaction or other financial decision is made regarding the taxation of your taxable portfolio,” according to Anastasio.

Anastasio ensures that everything will be communicated to the shareholders through their respective brokerage firm and always follows the communication from them in the next steps.

Elon Musk becoming the sole owner of Twitter has been talked about for weeks and now it’s official. While the future of this social platform is unknown, shareholders are keeping a close eye on the headlines to see what happens.

So, if you currently own stock or plan to buy some stock before the buyback is completed, it is important to have a Financial planning in place. Because if the company goes private, you will be paid for those shares, and you should strategically plan what to do with those profits – including filling up the emergency fund. , pay off debt or invest in your retirement.

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