Reply to How distortionary will the SpaceX IPO be?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How are 401ks and pension funds exposed to this ipo?[/quote]

Banks are "guaranteeing" a baseline level of trading and strong-arming retail investor funds to hold SpaceX on their portfolios. There's only so much demand for satellites and only so much revenue (data centers in space is a pipe dream). So while the pre-IPO investors cash out, everyone is holding SpaceX paper, which can catastrophically go down. Anthropic and OpenAI are coming as well, but I don't think they have such extortionate arrangements. There's probably a crash in the offing but there's no hiding place (at least for most of us).[/quote]

Why would say a small cap index, or an international index hold it?  Is it going to be in the S&P500 immediately?  Unless it is, I can’t think of any fund I hold where it could plausibly be included.[/quote]

Yes, it will be included in the S&P almost immediately as well as QQQ and represent a large portion of it because of the rule change Musk pushed forward.

Stock split announcement is interesting— I guess it improves liquidity but I think the real reason was to push individual stock price down to bring in more of the Musk fan boy small dollar investors.

https://finance.yahoo.com/markets/stocks/article/spacex-reportedly-issues-5-for-1-stock-split-as-ipo-timeline-accelerates-121128655.html[/quote]

In 2026 almost every brokerage allows for fractional shares. [/quote]

Sure, but psychologically owning 0.3 shares in SpaceX does not feel as satisfying to a cult member as being a full shareholder!  No voting rights (though probably that doesn't matter, I'm sure two a two-class structure that leaves Musk as king), and you are locked into your brokerage with fractional shares.[/quote]

Voting??  :lol:  :lol:  :lol:  :lol:

[i]SpaceX Dual-Class IPO: Elon Musk Retains Total Control

10-to-1 Voting Power: Public investors get Class A shares (1 vote), while insiders get Class B shares (10 votes). This gives Musk 79% of the voting power with only 42% of the equity.

The "Unfireable" Clause: Corporate bylaws state Musk can only be removed by Class B shareholders. Since he controls those shares, he cannot be fired without his own consent.

Zero Board Independence: As a "controlled company," SpaceX bypasses standard exchange rules requiring a majority-independent board, allowing Musk to handpick directors.

No Class-Action Lawsuits: Public shareholders are stripped of their right to sue the company in court, forcing all securities disputes into mandatory private arbitration.[/i][/quote]

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