From the article, emphasis mine: Here's a TLDR on this from the Reddit Bogleheads sub: In the comment section, there is advice on how to influence this process/decision, but the author says they...
From the article, emphasis mine:
Nasdaq recently circulated a Nasdaq-100 Index “Consultation” (located here). They are officially seeking feedback from investors on proposed updates to their index methodology. But let’s be real: this “consultation” is Nasdaq-speak for letting us know what they are going to force feed us, like a baggy foie gras duck. A thinly-veiled blueprint for how to forcefully transfer wealth from the retirement accounts of passive retail investors directly into the pockets of corporate insiders and early investors.
Both SpaceX and OpenAI are pushing Nasdaq and S&P and Russel/FTSE index providers to waive their listing requirements (including free float market cap, and seasoning) for an expedited listing on all indices. This would mean that instead of allowing several months/a year for 'seasoning' where price discovery takes place and the stock post-IPO finds a fair pricing, index investors would instead be forced to automatically buy these megacap stocks right at IPO with almost zero price discovery and are forced to take whatever inflated prices these companies list at.
I have seen quite a lot of people within the investment community (some small names and some quite big ones too) expressing concern that this is just giving VC's and early angel investors an opportunity to dump massively overvalued, unprofitable startups onto people's pensions.
Is there any hope that we can convince indexes not to drop the seasoning requirements? From now on, couldn't VC's just invest in junk companies, run the private market price into the trillions and then quickly list, dumping it onto people's pensions and taking the money?
In the comment section, there is advice on how to influence this process/decision, but the author says they used Gemini to come up with it and it's unclear whether it's actually viable so I won't paste it here. There is also a link to provide feedback in the document issued by Nasdaq. The deadline passed in February but the feedback form seems to be available still.
From the article, emphasis mine:
Here's a TLDR on this from the Reddit Bogleheads sub:
In the comment section, there is advice on how to influence this process/decision, but the author says they used Gemini to come up with it and it's unclear whether it's actually viable so I won't paste it here. There is also a link to provide feedback in the document issued by Nasdaq. The deadline passed in February but the feedback form seems to be available still.