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SpaceX has not been added to the S&P 500. They asked for the rules to be waived. S&P said no. I don't understand this article.
by 4fterd4rk 3mo ago
SpaceX has not been added to the S&P 500. They asked for the rules to be waived. S&P said no. I don't understand this article.
- Retric 3mo agoS&P 500 didn’t change their rules but other indexes have. https://indexes.nasdaqomx.com/docs/2026_May_NDX_Changes_FAQ.pdf https://indexes.nasdaqomx.com/docs/2026_May_NDX_Changes_FAQ.... Q: What is the purpose of modifying the liquidity and seasoning requirements? Could this change result in the inclusion of illiquid securities in the index? A: Most indexes require a liquidity threshold for new constituents, often as a minimum share count or average daily trading value. For the Nasdaq-100®, securities must have a three-month average daily traded value of at least $5 million. Since only very large companies – typically with full market capitalizations over $100 billion as of March 2026 – would have qualified for fast entry, they are expected to easily and quickly meet this requirement. However, an average daily traded value of at least $5 million from the time of listing will still be required for fast entry candidates. Many indexes have included seasoning requirements to ensure that traditional IPOs undergo price discovery and stabilization before being included. These requirements were originally intended to prevent small or little-known companies from entering too soon. However, there is now a trend toward IPOs being larger and more mature than in the past. Companies expected to meet the fast entry threshold are likely to be among the world’s most significant and well-known firms. High investor interest and trading volumes should accelerate price discovery, further supporting a shorter seasoning period. Note that the seasoning period for companies outside of the Top 40 remains at three months. Several indexes have changed not just Nasdaq, but it’s one more people have heard about.
- loeg 3mo agoNasdaq isn't super relevant.
- Retric 3mo agoSure but it’s not the only one. Add in SPY, QQQ, and IWM Force Index Funds and the percentage of Americans buying SpaceX early due to rule changes looks bad. Edit: Ops SPY didn’t change their rules.
- infecto 3mo agoSPYis sp500 is it not? Why would they include it? For others like qqq it has no bearing to be frank. It follows the nasdaq 100. Maybe an argument that the extra few months would have allowed more price discovery but I am not so sure.
- infecto 3mo agoLove the HN hive mind that downvotes things they don’t understand.
- ojbyrne 3mo agoAlso CRSP, which is the index used by US Total Market funds and many Target Date funds.
- reactordev 3mo agoFirms or funds, don’t care, want to put money in anyway…
- electriclove 3mo agoRage bait article or the author is just misinformed
- groundzeros2015 3mo agoLess informed journalists heard about it after we did and then decided to publish what they learned on twitter.
- lokar 3mo agoCRSP publishes the index used by VTI. They changed their rules to lower the float requirement.
- darth_avocado 3mo agoS&P 500 has not therefore the index funds tracking it are not going to put money on it. But nasdaq has, that means the ETFs tracking are pouring money into spcx. On top of that, all 401k target funds are total market funds, that track all of the market regardless of what the indices do. They own trillions in capital from people’s retirement, and by their own investment rules, a listing with that kind of market cap forces a bunch of money to flow into the company.