This Musk guy makes Ponzi look like the Pope.You almost have to admire
it the way you admire a raccoon breaking into a triple locked trash can at 2 AM.
You are furious. You know you should be furious. But part of you is at
the window wondering "how did he do that?". As you will see below,
this raccoon is getting the trash can manufacturer
to remove the lock for him first.
This is how retail investors are about to get played by the SpaceX IPO:
First they only release 5% to 10% to create an artificially inflated price.
Its called the low float strategy...
Also...the Nasdaq 100 inclusion is supposed to be earned. You list, trade for up to a year at least, prove you are stable and then maybe you might be selected for inclusion. That rule protects the millions of people whose retirement money is in index funds.
But Musk told Nasdaq "fast-track me or I list on NYSE... so the Nasdaq
invented a "Fast Entry" rule out of thin air....15 trading days and you are in.
They openly admitted it was designed for SpaceX. S&P is now considering the same
thing for the S&P 500, which has around $24 trillion in assets tracking it.
Why does this matter? The second SpaceX hits these indexes, every passive fund
is forced to buy, your 401k, your Vanguard fund, your target date fund.
All buying SpaceX at whatever inflated price it opens at, with zero public track record. Nobody asks you.
With the index inclusion and the implication of massive institutional liquidity
you have a clean exit for the insiders. After lockup expires, Musk and early investors dump the artificiality rarefied shares (it seems only 5% to 10%)
into a pool of demand that was artificially created by forced passive buying.
Your retirement money is their exit liquidity. Madoff went to prison for funneling new investor money to pay old investors. This is funneling passive investor money to inflate the price so insiders can cash out.And the exchange itself is rewriting the rules to make it happen.
TimesOldRoman•18m ago
What scandal? Inflating share prices is standard fare.
johnbarron•1h ago
This Musk guy makes Ponzi look like the Pope.You almost have to admire it the way you admire a raccoon breaking into a triple locked trash can at 2 AM. You are furious. You know you should be furious. But part of you is at the window wondering "how did he do that?". As you will see below, this raccoon is getting the trash can manufacturer to remove the lock for him first.
This is how retail investors are about to get played by the SpaceX IPO:
First they only release 5% to 10% to create an artificially inflated price. Its called the low float strategy...
Also...the Nasdaq 100 inclusion is supposed to be earned. You list, trade for up to a year at least, prove you are stable and then maybe you might be selected for inclusion. That rule protects the millions of people whose retirement money is in index funds.
But Musk told Nasdaq "fast-track me or I list on NYSE... so the Nasdaq invented a "Fast Entry" rule out of thin air....15 trading days and you are in. They openly admitted it was designed for SpaceX. S&P is now considering the same thing for the S&P 500, which has around $24 trillion in assets tracking it.
Why does this matter? The second SpaceX hits these indexes, every passive fund is forced to buy, your 401k, your Vanguard fund, your target date fund. All buying SpaceX at whatever inflated price it opens at, with zero public track record. Nobody asks you.
With the index inclusion and the implication of massive institutional liquidity you have a clean exit for the insiders. After lockup expires, Musk and early investors dump the artificiality rarefied shares (it seems only 5% to 10%) into a pool of demand that was artificially created by forced passive buying.
Your retirement money is their exit liquidity. Madoff went to prison for funneling new investor money to pay old investors. This is funneling passive investor money to inflate the price so insiders can cash out.And the exchange itself is rewriting the rules to make it happen.