SpaceX Stock Could Enter These 2 Spectacular Vanguard ETFs This Friday
Investors can own SpaceX stock in several ways.
SpaceX Stock Could Enter These 2 Spectacular Vanguard ETFs This Friday
Overview
Elon Musk's space transportation, satellite internet, and artificial intelligence (AI) company, Space Exploration Technologies (NASDAQ: SPCX), went public last Friday. SpaceX, as it is better known, saw its stock soar 19% on the day, giving the company a $2.1 trillion market capitalization at the close of trading, making it the world's seventh-most-valuable public company.
The Center for Research in Security Prices (CRSP) maintains a series of indexes designed to track different areas of the stock market, which companies like Vanguard use as a foundation for their exchange-traded funds (ETFs). CRSP has a fast-track rule that allows it to add large companies to its indexes five trading days after their initial public offering (IPO), which means SpaceX could be in several different ETFs starting this Friday, June 19.
Details
However, most of CRSP's indexes use a float-adjusted market cap methodology, which means they only consider the portion of a given company that actually trades publicly. Since SpaceX listed less than 5% of its shares, its float-adjusted market cap is only around $100 billion, so the company will have a relatively small representation in most CRSP indexes.
Source
Originally published at www.fool.com.
