SpaceX Isn't Joining the S&P 500 Right Away. Why That's Good News for the Market
The S&P 500 is already looking expensive; it definitely doesn't need another overpriced stock.
Overview
The SpaceX IPO is just days away, and it won't be long before it gets added to many index funds, giving investors exposure to the new stock even if they don't buy it. The Nasdaq recently made changes that could result in the stock being added to the Nasdaq-100 after just 15 trading days.
But don't expect SpaceX to join the S&P 500 (SNPINDEX: ^GSPC) nearly as quickly. It may not be until after a year that it's eligible, and even then, it may not be a sure thing given the company's lack of profitability. For the overall stock market, this could be good news. Here's why.
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Originally published at www.fool.com.
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