I’m not sure what the justification is, but I assume it’s some flavor of “so index fund holders don’t miss out on returns”.
It’s crooked because index inclusion drives massive flows at any price. SpaceX understands this and with so much money on the table probably exerted influence (maybe the big AI players contributed too).
Passive funds don’t care about price (quite the opposite, they reward higher market caps in a feedback loop).
But with an IPO, you’re supposed to let the market have some time to find the right price.
Not to mention the changes related to profitability rules etc.
alt Hacker News
I’m not sure what the justification is, but I assume it’s some flavor of “so index fund holders don’t miss out on returns”. It’s crooked because index inclusion drives massive flows at any price. SpaceX understands this and with so much money on the table probably exerted influence (maybe the big AI players contributed too). Passive funds don’t care about price (quite the opposite, they reward higher market caps in a feedback loop). But with an IPO, you’re supposed to let the market have some time to find the right price. Not to mention the changes related to profitability rules etc.