Technically, it doesn't force anybody to do anything. Funds can create an All Word ex-SpaceX fund that follows a passive index but short sells spaceX so that it follows everything in the index but SpaceX and investors can do the same.
Hardly anyone will do this though and they know it so Elon will get a big public offering from this. Investment Bankers pushed this to help Musk's IPO. I doubt it was Musk's influence alone that accomplished this nor do I think Musk even thought of the idea. The IBanks wanted a higher fee return.
"Just buy the index" has been a forced meme in personal finance circles for a long time. Now you get to see what happens when getting into the index becomes a game instead of a milestone.
The problem is black rock/fidelity/all the others who basically bully CEOs into doing their bidding, or else they will sell their stock, collapse the stock price and since most of the CEO's salary is tied to stock performance, well...
For instance, a CEO in Canada earns $450,000 a year from his "salary" adn .... $7,000,000 from "stock options." Per year.
Buying index is stupid. You want a fund, buy one that aligns with your mindset instead of lump of everything. I'll be curious to see if the main fund I use for large caps buys it. I doubt it. They only hold about 50 of the SP500. So many freak out over stupid shit expense ratios and such.
To the others point too the Blackrocks of the world don't sell, they vote. They hold the voting rights of ALL the people who put nearly $800B into their IVV SP500 index fund for example. They are voting every one else's money. They can't just say oh we are mad at this company we will sell them, they'd either have to convince the S&P to remove them, or just use their massive board and voting influence.
I like Space X as a company. Won't touch their stock for a while. Hype stocks are for the gamblers.
It's misleading. Yes, they are adding it to its index (and perhaps they shouldn't, arguably IPO/new stocks shouldn't be added to the index for a while, many tend to crash, see Facebook IPO for instance), but it's such a tiny fraction it's unlikely to have any real tangible impact for 99.9% of investors.
Instead of returning 9.85% your portfolio will return 9.84%. And Space X IPO will rekindle the tech market and cause every stock to soar anyway
To be clear, Space X will 100% crash post-IPO. Doesn't really matter unless you are dumb enough to buy the IPO lol. Also, it will recover. His buddy Trump will invent some BS contract for sattelite surveillance or whatever and give him a trillion over 10 years or something, and the stock will soar.
In a world where it is illegal to act against stockholders' interests, .01 percent is still a crime. It's just never a crime if big people do it to small people.
I'm looking forward to seeing some gain screenshots posted by the guys who are absolutely certain SpaceX is going to crash and will therefore be shorting it, because you'd have to be really retarded to turn down guaranteed free money.
Technically, it doesn't force anybody to do anything. Funds can create an All Word ex-SpaceX fund that follows a passive index but short sells spaceX so that it follows everything in the index but SpaceX and investors can do the same.
Hardly anyone will do this though and they know it so Elon will get a big public offering from this. Investment Bankers pushed this to help Musk's IPO. I doubt it was Musk's influence alone that accomplished this nor do I think Musk even thought of the idea. The IBanks wanted a higher fee return.
Space x has defense contracts forever. No chance this company is tanking
Long term it shouldn’t bar a total collapse or someone doing what they do but better. Short term though I can see it screwing over retail investors.
Until it literally gets someone killed. Which it will.
Haha military industrial complex suddenly cares about human life ?
Which is why I said it will. You're ignoring the obvious consequence.
It could be any company. There are zero things special about SpaceX. Think in the abstract instead of the terms they've defined for you already.
"Just buy the index" has been a forced meme in personal finance circles for a long time. Now you get to see what happens when getting into the index becomes a game instead of a milestone.
The problem is not buying the index.
The problem is black rock/fidelity/all the others who basically bully CEOs into doing their bidding, or else they will sell their stock, collapse the stock price and since most of the CEO's salary is tied to stock performance, well...
For instance, a CEO in Canada earns $450,000 a year from his "salary" adn .... $7,000,000 from "stock options." Per year.
Buying index is stupid. You want a fund, buy one that aligns with your mindset instead of lump of everything. I'll be curious to see if the main fund I use for large caps buys it. I doubt it. They only hold about 50 of the SP500. So many freak out over stupid shit expense ratios and such.
To the others point too the Blackrocks of the world don't sell, they vote. They hold the voting rights of ALL the people who put nearly $800B into their IVV SP500 index fund for example. They are voting every one else's money. They can't just say oh we are mad at this company we will sell them, they'd either have to convince the S&P to remove them, or just use their massive board and voting influence.
I like Space X as a company. Won't touch their stock for a while. Hype stocks are for the gamblers.
Title should of been Elon's Sack.
It's misleading. Yes, they are adding it to its index (and perhaps they shouldn't, arguably IPO/new stocks shouldn't be added to the index for a while, many tend to crash, see Facebook IPO for instance), but it's such a tiny fraction it's unlikely to have any real tangible impact for 99.9% of investors.
Instead of returning 9.85% your portfolio will return 9.84%. And Space X IPO will rekindle the tech market and cause every stock to soar anyway
To be clear, Space X will 100% crash post-IPO. Doesn't really matter unless you are dumb enough to buy the IPO lol. Also, it will recover. His buddy Trump will invent some BS contract for sattelite surveillance or whatever and give him a trillion over 10 years or something, and the stock will soar.
In a world where it is illegal to act against stockholders' interests, .01 percent is still a crime. It's just never a crime if big people do it to small people.
I'm looking forward to seeing some gain screenshots posted by the guys who are absolutely certain SpaceX is going to crash and will therefore be shorting it, because you'd have to be really retarded to turn down guaranteed free money.
I chose a great time to cash out. wake me up when the Stock has been live for 6 months.
previously was only nasdaq who were dumb enough to let this illiquid stock enter their main index