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The indexes are weighted based on the float (at least most of them)... so a small float means they will buy a much smaller number of shares.
by cortesoft 4mo ago
The indexes are weighted based on the float (at least most of them)... so a small float means they will buy a much smaller number of shares.
- rlt 4mo agoI think that's the point the parent comment was making.
- thephyber 4mo agoNo, the parent was saying the other rule change is arbitrary. The tiny float and just a few days before the index funds buy means they have to buy without any more revenue / earnings info than was already published pre-IPO. 90 days is a quarter, so there WILL be more price discovery before a 0 day index fund seasoning period.
- Ballas 4mo agoWell, they changed that rule as well. If the float is less than a set percentage, then it is weighted as a much higher percentage. Something like the minimum for weighting is 12% where SpaceX's float will be below 5% (those are the numbers I recall, but I don't have a lot of confidence in them.) That means they will be weighted as if the float was 12%.
- JumpCrisscross 4mo ago> they changed that rule as well S&P hasn’t changed any rules yet.