Millions of Investors Are About to Own SpaceX Stock Indirectly -- Whether They Want to or Not
Two major indexes are adding SpaceX stock. And when an index adds a stock, the funds that track it have to buy -- profitable or not.
Overview
For the first time, anyone who owns an index fund is about to own a piece of SpaceX (NASDAQ: SPCX). The rocket and satellite company went public on June 12 in the largest initial public offering (IPO) in history, and barely two weeks later it is being pulled into the funds that sit inside millions of 401(k)s and brokerage accounts.
On Friday, SpaceX was added to the Russell 1000 under a new rule that fast-tracks the biggest new listings into the index. And before the market opens on July 7, it will join the Nasdaq-100 through a similar process. Likely millions of people who have never placed a direct order for the stock are about to pick up a sliver (albeit indirectly) through funds they already hold.
Details
Fortunately, the buying comes as the shares have cooled. SpaceX trades at about $153 as of this writing, down about a third from the post-IPO high of about $226 it reached on June 16.
Source
Originally published at www.fool.com.