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This Chinese Stock Soared 4,500% on Nasdaq and No One Knows Why
- fanzhang 10y agoCould it be that the float on this stock is so small that when index funds try to buy the stock, the price is pushed up massively? A theoretical problem with market-cap-weighted index funds is that a fund that holds x percent (usually very small) of the world's wealth will want to buy x% of each company. If a company has less than x% of stock outstanding, the fund will push the price up indefinitely