Bummer of a Birthmark, Elon

Unlike Nasdaq and a number of other stock indices,  S&P will not be waiving its rules for inclusion into its S&P 500 index for the SpaceX IPO.

These requirements are:

• Last quarter earnings and the sum of the last four quarterly earnings must both be positive.
• Annual trade volume must meet or exceed the market cap.
• 12 months have passed since the initial public offering.
  US-based. The company trades on a US exchange, a plurality of its assets are US-based, and the headquarters are in the US
• The company must be a corporation that issues common stock. It cannot have multiple share structures.
• Unadjusted market cap is at least $8.2 billion.
• The IWF is at least .10.

With a $75 billion IPO on a $1.75 trillion (IWF=0.04) it means that SpaceX would not qualify for inclusion for well over a year.

The company fulfills only one of the requirements for a listing. 

Considering the large number of funds that either in whole or in part invest in the S&P 500 as an index fund, this means that about $14 billion in forced purchase of the stock will not occur. 

So about 20% of guaranteed demand for the IPO won't be there.

Despite an expected record-breaking IPO, SpaceX will still have to follow the rules and wait at least a year before it’s added to the S&P 500, the benchmark behind many Americans’ retirement funds

S&P Dow Jones Indices announced Thursday that it is keeping its eligibility rules intact for the S&P 500 and several other major indexes. Indexes are benchmarks that track specific slices of the stock market. The best known is the S&P 500, which tracks 500 of the largest publicly traded companies in the United States.

Many index funds and exchange-traded funds (ETFs) hold stocks that mirror these benchmarks in an effort to replicate their performance. These funds are a key part of many 401(k)s, pension funds, and retirement accounts.

………

Other index providers, including Nasdaq and FTSE Russell, have already changed their rules to allow companies like SpaceX to join some of their indexes sooner.

But the S&P 500 remains the most widely tracked equity benchmark in the world. Roughly $7.5 trillion in passively managed funds follow it, Bloomberg reports.

If SpaceX had been fast-tracked into the index, it would have resulted in about $14 billion in forced passive buying of the company’s stock, according to an estimate by Bloomberg Intelligence.

How dare they interfere with Elon Musk's God given right to commit stock fraud.