SpaceX Can Be Added to the Russell 1000 and Russell 3000 After Today -- Don't Take the Bait
Written by Sean Williams for The Motley Fool -> SpaceX cemented its name in the record books by more than doubling the largest-ever cash raise for an initial public offering (IPO). Before SpaceX debuted, the U.S. Russell Equity Indexes amended their inclusion criteria, expediti
SpaceX cemented its name in the record books by more than doubling the largest-ever cash raise for an initial public offering (IPO).
Before SpaceX debuted, the U.S. Russell Equity Indexes amended their inclusion criteria, expediting the entry of Wall Street's hottest IPO.
However, the removal of certain investor protections, coupled with SpaceX's unique lockup schedule, doesn't benefit retail investors.
On June 12, Elon Musk's SpaceX (NASDAQ: SPCX) cemented its name in the record books by more than doubling the largest-ever cash raise for an initial public offering (IPO) at $75 billion. It also closed out its first trading day with a valuation of roughly $2.1 trillion, placing it ahead of established trillion-dollar companies Broadcom and Tesla .
But SpaceX was rewriting record books long before it even went public. Thanks to several structural changes to major index inclusion, this artificial intelligence (AI) and space economy conglomerate can find its way into the Russell 1000 and Russell 3000 after today's (June 18) trading session. However, investors would be wise to keep their distance .
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On May 1, Nasdaq (NASDAQ: NDAQ) Global Indexes rewrote the rules and investor protections governing inclusion in the Nasdaq-100 . Among the most notable changes was the removal of the low float requirement and a substantial shortening of the timeline to entry from approximately three months to just 15 trading days. Including holidays, SpaceX can enter the Nasdaq-100 after July 6.
But the U.S. Russell Indexes took things one step further. In late May, the eligibility criteria were amended to shorten the timeline for large-scale IPOs to join the pertinent U.S. Russell Indexes to just five trading sessions.
