They changed the rule regarding getting admitted into an index. Reduced the timeframe and reduced the requirement for a float - if the company is sufficiently large.June 12 SpaceX launch their IPO, by the end of June (the 26.) It will be admitted into the Nasdaq100 index, it will be done so on a shallow float.All index funds that track the Nasdaq 100 will almost immediately be forced to buy SpaceX, they are an index tracking ETF after all, so they don't really care about the price, just that their ETF reflects the content of the Nasdaq100.Combine this with the low float, then a death spiral could start, as the price increase because of the forced buying, they are forced to buy more - because these ETFs are top weighted. Continuously selling out of the Nasdaq99 to buy into Nasdaq1, the amount of money that will (potentially) die in these Nasdaq100 tracking index funds will be astronomical. A black Monday type of event.
>>62272283Musk found the infinite money glitch
>>62272283Okay, so how do I profit from this?
>>62272293shallow float.It will be like a shit coin where you just clean out the order book, as soon as he begins to realize some of these $ it will drop fast and hard.
So what do I do about this?
>>62272354Hide, Short, Long.. idk what you do.
>>62272283SpaceX is the most innovation company on Earth right now. Elon Musk will drag humanity to the stars even if we are insisting on fighting him and dragging our heels.Asteroid mining will make us all rich in less than 10 years. Then we will be building the orbital ship yards and colonizing the stars.The boomers wish to cry about it and burden us. It does not matter, smart people know.
>>62272333>as soon as he begins to realize some of these $And this is where you're wrong. He won't. He can just borrow money against those stocks.
>>62272283Hold a dividend growth index instead of straight voo if you dont like it. I wouldnt hold spy or nasdaq forever even before the rules.
>>62272283Muskrats scam will be 0.5% of the index, in the long run it wont matter
>>62272523What this guy said.Most of the shares will be locked up and tightly held outside of the float.Plus, It'll be easier for Musk to take out loans against these shares once the company is public for various reasons.- Immediate valuation on the public markets- Shares can be quickly sold for cashEtc.
>>62272283Interesting point, however what percentage of Nasdaq100 shares are bound in ETFs? I don't think their leverage is big enough.Also the ETF's have to sell the shares of the Nasdaq101st company, which will give them some headstart without selling Nasdaq1-99 stocks.I have a bit over 50k in a physical Nasdaq100 ETF, lets see how it goes.
>>62272283So just buy SpaceX IPO? Seems like a no-brainer
>>62272483>Asteroid mining will make us all rich in less than 10 years. Then we will be building the orbital ship yards and colonizing the stars.It's all fake you dumb nigger. "We" are in humanity, already have faster than light travel and free energy and anti-gravity technology. It's sequestered away in a breakaway civilization that started making these discoveries over a century ago. At any time they can come in and take over. They will likely do this at some point in the next few decades. SpaceX may make some people rich in the short term, but there is no future in which we are using rocketry to fly to asteroids and mine them. It's fucking pointless when antigravity and teleportation already exists
>>62272283SpaceX? You mean the company that did 50% of all launches last year? The launches that put 90% of all mass into orbit last year? That SpaceX?
>>62274444Just because SpaceX is a company that has a real product, doesn't mean the IPO isn't a scam on passive investors into the Nasdaq-100
>>62274444the company that has less customers than your national ISP
