Why Prestige Wealth (PWM) Stock Is Exploding Higher

Prestige Wealth Inc PWM shares are trading higher by 65% to $1.24 Monday after the company announced that it entered into a definitive acquisition agreement to purchase all shares of SPW Global.

The total purchase price for the acquisition is $4.5 million, with $3 million paid in cash and the remaining $1.5 million settled through the issuance of 1.9 million Class A ordinary shares and 500,000 Class B ordinary shares of PWM. 

As part of the deal, key employees of Wealth AI will be retained and continue their employment post-acquisition. Additionally, the agreement includes non-competition and non-solicitation clauses for a period of three years. 

Per a Friday press release, the transaction, expected to close in the fourth quarter of 2024, is intended to strengthen PWM’s technological capabilities in artificial intelligence, helping the company develop next-generation AI-driven wealth management solutions for its clients.

Read Also: What’s Going On With Lucid Stock?

How To Buy PWM Stock

By now you're likely curious about how to participate in the market for Prestige Wealth – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, PWM has a 52-week high of $7.47 and a 52-week low of $0.67.