alt Hacker NewsThe worst about the SpaceX IPO is Nasdaq changing their inclusion rules for the Nasdaq 100. The index fast-tracked SpaceX stock for inclusion 15 days after the IPO, instead of the normal three-month seasoning period. They also changed its 10% minimum float rule to a 3x weighting boost for low-float stockss. So many people will unwillingly and prematurely invest into SpaceX, before it has any chance to discover its real price. IE: The floating, 5% at launch, could attain 30% end august, if Nasdaq didn't change their rules it would have included SpaceX after this..
https://finance.yahoo.com/markets/stocks/articles/nasdaq-che...
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Nasdaq, FTSE Russell, and CRSP all implemented fast-track options. Fortunately S&P kept its 12-month requirement.
Is this really the worst thing? People keep bringing this up but it’s the Nasdaq 100. It would be shocking if we were talking about the SP500.
What fraction of investors who chose Nasdaq100 over SPY wouldn't have also wanted SpaceX? The whole point is hot and tech-heavy speculation.
I am really curious for what reason they choose to do it? Like what is in for Nasdaq?
Worst, if you're a Nasdaq 100 ETF investor. Best, if you were a SpaceX private investor. All a matter of perspective.
nah the very worst thing about the spacex ipo is that schwab won't allow me to short it. has nothing to do with the recency of the issue. today i shorted some skhy when i realized it's trading about 30% over the Korean share price (I could be wrong about that)
The Nasdaq is a shit index to begin with. There are so many other options.
Rule changes like this create market inefficiencies that can be exploited by retail; if everything plays by constant rules, the vast majority of alpha gets concentrated in the institutions.
I love shaking up the firms. Gives normal people a chance to build wealth.
So, the inclusion rules are basically "these are the hard limits that specify which stocks are eligible, unless someone really big and lucrative comes along, in which case it's whatever and we'll just adjust the rules to make them eligible"?