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Until recently companies that IPOed weren’t immediately added to the major indexes so there was a longer period for price discovery. This year that changed; so
by alemanek 4mo ago
Until recently companies that IPOed weren’t immediately added to the major indexes so there was a longer period for price discovery. This year that changed; so you have retirement funds that typically are more conservative acting as exit liquidity for these massive IPOs.
I would have less of an issue if the inclusion in major indexes was delayed 6-12months but we are looking at inclusion within like 5 days for some of these indexes.
- tonfa 4mo agoThe float will get bigger as you wait tho, since it's common for early investors to be locked for e.g. 6 months. You can argue it's better to smooth the entry as float gets unlocked rather than being front run by all the hedge funds in a single day on a massive capitalization.
- ojbyrne 4mo agoThe lockup periods are also being fiddled with: https://finance.yahoo.com/markets/stocks/articles/spacex-ipo-lock-structure-lets-140626263.html https://finance.yahoo.com/markets/stocks/articles/spacex-ipo...