Joseph ToppeTwitter (TWTR) stock trading higher before fading to a loss on Monday after a report that said CEO Jack Dorsey will be leaving his executive role with the tech giant.
After a halt in trading, the company confirmed in a news release that Dorsey “has decided to step down as Chief Executive Officer and that the Board of Directors has unanimously appointed Parag Agrawal as CEO and a member of the Board, effective immediately.” Currently, Dorsey is CEO of both Twitter and Square, a digital payments company.
When trading was halted at 9:52 am local time, Twitter stock was up by just over 3%. When trading resumed an hour later, the stock was up by over 4%. By noon, however, it was trading at a loss on the day of 0.6%
Twitter stakeholder Elliott Management wanted to replace Jack Dorsey as far back as 2020, before the investment firm reached a deal with the company’s management.
The social media app announced recently it is targeting 315 million monetisable daily active users by the end of 2023, and hoping to at least double its annual revenue the same year.
Read more: Twitter gains as platform reaches record daily users
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
