SpaceX Is Now a Member of the Nasdaq-100: Here's What History Says Happens Next
Here's how new entrants have performed relative to the rest of the index over the last six years.
Overview
Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, made its market debut just a few days ago, but it's already a member of the Nasdaq-100 index. The index is composed of the 100 largest non-financial stocks listed on the Nasdaq exchange. Ordinarily, there would be a three-month waiting period. Additionally, the company would be required to float at least 10% of shares on the public market. However, the index changed its rules ahead of SpaceX's IPO to allow inclusion after just 15 trading days and with a smaller float.
Inclusion in the Nasdaq-100 is notable because it creates forced buyers through index funds like the popular Invesco QQQ Trust (NASDAQ: QQQ). That could help support the stock price and push it higher. To that end, it may be worth examining how prior index entrants performed to gauge what could be in store for SpaceX stock.
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Originally published at www.fool.com.