SpaceX IPO – Why Everything Is Happening So Fast

/ Liza Dewlar

SpaceX’s upcoming IPO isn’t just enormous — it’s also highly unusual.

Many large index funds (especially those tracking Nasdaq 100 and S&P 500) want to buy the stock as soon as possible. Normally, it takes several months for a new company to be added to these major indexes. But because SpaceX is so big and anticipated, the index providers have made exceptions and dramatically sped up the process.

  • Nasdaq 100: Normally up to 3 months — now down to about 15 trading days after the IPO.
  • FTSE Russell (Russell 1000): Down to about 5 trading days.
  • S&P 500: No major changes.

This means index funds will have to buy SpaceX shares much faster than usual.

The big question for me is: where is all this money coming from? Are many players sitting on large cash reserves, or will we see forced selling in other stocks to fund these purchases?

Either way, it will likely add even more fuel to the extreme volatility we’ve almost become used to.

This is a new post on the new dewlar.me blog.
You can find the old blog here:https://mrsdewlar.blogspot.com

Leave a comment