S&P Global said on Thursday it was not changing the requirements for entry into its major indices, dealing a setback to Elon Musk’s SpaceX by effectively ruling out a swift entry for the world’s biggest-ever IPO into the benchmark S&P 500 index
Some explanation.
Within weeks of SpaceX going public, millions of Americans are going to own its stock without having chosen to, without having been asked, and at whatever price Elon Musk and his early backers decide is fair.The shares will simply appear inside the index funds in their 401(k)s, the target-date retirement accounts of teachers and nurses and bus drivers, and the boring tracking products financial advisors push on every middle-class household. The buying will be automatic. Musk sets the price himself, the index funds buy at whatever level he chooses, and when the inevitable correction lands, it lands on people who never knew they owned this company- a danger the American Federation of Teachers is demanding the SEC address.