A snarky tweet from 2017 is now a reality; Elon Musk will soon be the owner of Twitter.
This comes after weeks of back-and-forth as Musk purchased a large amount of the company’s stock and then forced the board to take the ‘poison pill’ to avoid a hostile takeover. Musk has been very public about his discontent with Twitter’s board of directors and is adamant about changing the platform. He’s mentioned rolling back content moderation and implementing a largely-asked-for edit button on published tweets.
To make those changes, he intends to take the company private, which means if you actively hold shares of Twitter, you have a vested interest in the potential acquisition.
Select details how you can buy Twitter stock before it’s taken private, and what happens to your shares when the deal is complete.
How you can buy Twitter stock before it goes private
As of now, Twitter is still a publicly-traded company on the New York Stock Exchange. This means that for roughly ~$50 (approx. stock price), you can own a small slice of the social media giant.
However, once Musk follows through on his promise to take the company private, the ability to buy more shares will be over. But even though the deal was struck today, you’ll still be able to buy or sell Twitter stock until the deal is closed.
Dan Raju, CEO of Tradier, tells Select what Twitter shareholders should keep in mind:
- If the deal is done today, it doesn’t mean you can’t continue to buy and sell the stock. However, he strongly believes the share price will likely become “volatile” between the time of announcing the deal to officially delisting the stock.
- Raju said it would be “weeks rather than days” before it’s delisted on the NYSE, and it’s “hard to guess” how long the regulatory process will take.
- His analysis says the acquisition is “good for the stock” and traders could look into call options as a way to bet on the positive reaction if the deal is struck.
- So if you desire to have an ownership stake in the future of Twitter before it’s taken private, you’ll need to open a brokerage account where you can buy and hold your stocks. It’s free to open an account with brokerages like Fidelity, Robinhood or Vanguard, which let you buy and sell stock for free.
From there, simply connect a checking account to fund the purchase. Lastly, search the ticker symbol 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 is made up of just over 500 companies, and Twitter is one of them.
However, be aware that purchasing individual stocks, including Twitter, can be risky — buying Twitter stock above $54.20 could result in a loss.