Rule Change so SpaceX Should Join Sp500 6 Months After IPO

The S&P Dow Jones Indices has officially proposed rule changes where megacaps like SpaceX will be included into the index in 6 months instead of 12 months. This would align also with the unlocking of shares of many SpaceX SPV investors after 6 months. When Tesla was included into the SP500 the shares went up 70%. There is a lot of mandatory buying of the stock by passive funds. About 10% of Tesla shares are held by passive funds. The biggest passive index funds is the SP500 funds. There would be more float when the shares unlock at the 15 day point and all shares should be unlocked by the 6 month point.

Proposed changes:
• Faster entry. Company would now only need to be public for 6 months (instead of 12 months) before being added to indexes
• Waive the minimum public float requirement (previously it was 10% float requirement)
• Waive the profitability requirement (no need for positive net income)

If there is more float then there is more buying.

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