"The IPOs will trigger an enormous wave of demand from investors who will pull money out of other assets to buy - sort of like how the ocean pulls back before it crashes over the beach and into the surrounding area upending everything. The "scale and consequences" will be massive, he says."
"The rules are being rewritten to benefit IPO issuers and early-stage insiders, and your capital is the tool being USED to enrich them, writes long-time investor George Noble on Substack. The proposal is "egregious," argues WSJ columnist James Mackintosh, saying that it is an acknowledgement that there are different rules for the big companies."
"Investors want indexes to be representative of the market, says Jay Ritter, the director of the IPO initiative at Warrington College of Business at the University of Florida. These companies likely would be included sooner or later unless they totally collapse, so it's mainly a question of timing."
"Nasdaq has already changed its rules for SpaceX to allow for fast-tracking onto the Nasdaq 100 index, which features the biggest tech companies. Where it stands: The S&P is considerin"
OpenAI and Anthropic are expected to IPO this year, potentially creating very large market value. New listings could drive a surge of investor demand as capital shifts from other assets to buy the shares. The scale and consequences are expected to be massive. The S&P 500 is considering changing its rules to fast-track SpaceX’s inclusion in the benchmark index. If approved, index funds would likely be forced to invest, increasing guaranteed demand. Critics argue the changes are unfair and distort the stock market by benefiting IPO issuers and early insiders. Supporters say indexes aim to reflect market reality and that inclusion would likely occur eventually, making timing the main issue. Nasdaq has already adjusted rules to fast-track SpaceX onto the Nasdaq 100.
Read at Axios
Unable to calculate read time
Collection
[
|
...
]