The most SHAMELESS structural manipulation of a index I've ever seen

6 hours ago

SpaceX is preparing for a potential IPO with a target valuation of $1.75 trillion, which would make it the sixth-largest company in the U.S.
Nasdaq is proposing a 'Fast Entry' rule that would allow newly listed companies with a top 40 market cap to join the Nasdaq-100 index after just 15 trading days, bypassing typical waiting periods and liquidity requirements.
The proposal includes a controversial 5x float multiplier for stocks with less than 20% free float, which could artificially inflate the index weight of companies like SpaceX, benefiting insiders at the expense of passive investors.
This change could force passive funds to buy shares as if the company's market cap is much larger than the actual available float, creating a structural wealth transfer from passive investors to insiders.
The S&P 500 has stricter requirements, including a 50% free float and a 6-12 month seasoning period, highlighting the unusual nature of Nasdaq's proposed changes.
Critics argue that the changes are a blatant manipulation to benefit SpaceX and its insiders, with passive investors providing the exit liquidity when lock-up periods expire.

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