By - Che Browndon
Written-on - January 29, 2024
During the month of December 2023, Fidelity reportedly marked up its shares in X holding for more than 11%. This new markup by fidelity is going to benefit both parties especially X. This information was revealed in an article found on the Axios official website.
Fidelity otherwise known as Fidelity Investments is a financial service corporation based in Boston Massachusetts. Fidelity invests in life insurance, index funds, it deals with wealth management, and it operates a brokerage firm, retirement services, financial securities and much more. A markup is a situation were dealers (or a corporation in this case) sell securities to retail investors from their own account. It is the difference between the price the dealer paid for the security and the price they sell it for.
This is very important because after Elon Musk acquired X for $44 billion, Fidelity has frequently markdown the platform for month so this could mean X is one again gaining value. As of the moment, the platform is worth less than half compared to its value before the purchase. Meaning the platform is value at an amount no greater than $20 billion even though Musk purchased for a greater amount.
The markdowns by Fidelity came after the corporation assisted musk in purchasing the platform. Fidelity currently holds 68% discount to its per share purchase price as of fall 2022 giving it an edge. Recently, X has been facing problems. Major platforms have dropped the brand because of Musk’s recent controversy supporting an anti-Semitic post on the platform.
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