3 ms·
From Matt Levine’s column today: > The index demand is not 100% of the stock available in the IPO, or 110%, or even 50%. But it’s plausibly more than 25%. It’s
by skybrian 5mo ago
From Matt Levine’s column today:
> The index demand is not 100% of the stock available in the IPO, or 110%, or even 50%. But it’s plausibly more than 25%. It’s not a short squeeze, but it’s a lot. Add a reported 30% allocation to retail, and arguably a majority of the IPO is being sold to price-insensitive investors. That is one way to get a high IPO price.
- DC-3 5mo agoDo the indexes have some capacity to defer / waive buying into new stocks if they judge it in the interests of investors?
- deleted 5mo ago[deleted]
- tylervigen 5mo agoNo, arbitrary decisions would defeat the point of indexes. But they can and do add systematic protections, like only buying based on the free float to avoid a short squeeze.