this post was submitted on 13 Jun 2026
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I don't want to watch the majority report so if someone wants to summarize that would be cool.
I don't have a 401k but it's always good to know how to talk to people who do about things like this
Basically, Musk got the rules changed so his overvalued private company, can go public and get added to index funds. Usually in situations like this, the company has to wait 1 year on the exchange before being added to indexes, so its stabilized before index funds buy it.
Since Musk got the rules changed, its the largest public stock offering that immediately went to index funds, because the index funds are required by law to buy the largest companies.
Most people's 401(k)s are tied to index funds. So this massively over valued company got paid $1.8T, which it can pay its private investors out with. Now the public is holding the bag in the form of retirement funds. When SpaceX collapses, so does everyone's retirement accounts.
Why can't your shitty hellcountry crash and burn for a cool and/or funny reason, why's it gotta be this boring shit.
The 1,8T is just the total evaluation I think. But now they're selling stocks at a fixed price and changing the rules so investors can sell (start dumping) earlier than usual. Basically setting their own evaluation...
Just absolute clown world.
Wym index funds are required to buy the largest companies? What law is this?
Not a law, that's just how index funds work. It's meant to be an un-managed investment fund that tracks some aspect of the market via predefined rules. The S&P500 for instance tracks the top 500 companies by market capitalization (among a bunch of other weird rules), and it does so by purchasing shares in these companies proportionately. So new company appears that meets the criteria -> purchase. The big part of the story here is the fact that all of these index funds changed their rules to include spacex, especially when spacex's finances look terrible.
I highly doubt that this is true. Do you have a reputable source for this?
wall street journal
FTSE Russell Latest to Make U.S. Index Inclusion Easier ahead of SpaceX IPO | May 27, 2026 (archive.ph)
fortune
You can ignore AI giants like SpaceX, but your 401(k) won’t | June 13, 2026 (archive.ph)
u.s. senate committe on banking
Warren Presses Index Providers on Rule Changes to Rush SpaceX Shares Into Americans' Retirement Accounts | June 11, 2026 (senate.gov)
nyc comptroller
Letter to the London Stock Exchange Group and FTSE Russell Re: SpaceX | June 11, 2026 (nyc.gov)
It says index inclusion not ETF inclusion. So, if you buy an ETF of the S&P 500 you‘re good since there SpaceX is not listed.
https://www.cnbc.com/2026/06/12/spacex-ipo-sp-500-index-funds-investors.html
s&p is one of the few that didn't change their rules. if you buy an etf of a different index, they are legally required to purchase the same equities in the index, or that would be fraud.
from the article you linked:
Thank you !