Should You Buy SpaceX Before It Joins the Nasdaq-100 On July 7?
Some of the most popular index funds will need to own SpaceX next month.
Overview
Space Exploration Technologies (NASDAQ: SPCX) will join the Nasdaq-100 on July 7, after Nasdaq adjusted its rules to provide a "Fast Entry" option for eligible companies. Funds that track the Nasdaq-100, including the Invesco QQQ Trust, will need to buy SpaceX stock after market close on July 6.
JPMorgan estimates that this could drive $4.3 billion in passive inflows into SpaceX. Considering SpaceX has a tiny float -- only about 4% -- that kind of investment may push the price up. Should you buy before then to take advantage?
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Source
Originally published at www.fool.com.
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