History Says This Is What Happens When a Stock Joins the Nasdaq-100
SpaceX is joining the widely followed Nasdaq-100 Index, and that could provide a short-term jolt to its shares.
Overview
Membership has its privileges. Space Exploration Technologies (NASDAQ: SPCX) investors are hoping that's the case regarding the stock's July 7 inclusion in the Nasdaq-100 Index.
A quick refresher: Before what was the largest initial public offering (IPO) in history, Nasdaq and several other index providers embraced "fast track" rules, paving the way for SpaceX to join various gauges more quickly than usual. In the case of the Nasdaq-100, the index opened the door for SpaceX (and potentially other large IPOs in the future) to join the benchmark after 15 trading days. For Elon Musk's company, that day is July 7.
SpaceX is joining the Nasdaq-100 Index on July 7, but that may not translate into huge gains for the stock. Image source: Getty Images.
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Originally published at www.fool.com.