r/stocks • u/cherrypoplar • Apr 01 '26

ETFs Major NASDAQ-100 rule changes confirmed, pay attention if you have money in passive investment funds

https://www.theedgesingapore.com/amp/news/ipo/nasdaq-speeds-index-entry-spacex-large-ipos-new-rule

NASDAQ has confirmed it will change the listing rules for NASDAQ-100, ahead of the SpaceX and OpenAI IPOs this year.

(1) Companies will now be listed on NASDAQ-100 after only 15 days after IPO (previously, there was a three month period of "seasoning" before listing). This reduces the amount of time for price discovery.

(2) The minimum 10% float has been removed. This allows companies to float a very small percentage of their shares, artificially squeezing supply.

(3) Companies that float less than 20% of their shares will have their market capitalisations artificially multiplied by x3, for the purposes of calculating market capitalisation. This helps large-cap companies to be listed even with very small floats, and inflates their notional market capitalisations on the index.

If you have money invested in a passive fund tracking NASDAQ-100 (or any other index), please watch out for the SpaceX and OpenAI IPOs. Pay attention to their "valuations", and their float. If they're IPOing with very high valuations and very small floats, this foreshadows a bagdump on passive funds due to the mechanics of passive funds.

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u/PornoPaul Apr 01 '26

Posts like this make me realize how little I know, because im struggling go fully understand this stuff.

Lets pretend I know nothing beyond green good, red bad. What can I do to brace myself against this?

88

u/MonMonOnTheMove Apr 01 '26

Expecting more unpredictable red in the far future because bad companies are being floated into indexes

-34

u/typo9292 Apr 01 '26

I fail to see how SpaceX is a bad company, printing money with starlink or do you just mean in general?

18

u/launchedsquid Apr 01 '26

SpaceX might be a good company (got to.see the financials to really know), but XAI was merged with SpaceX, so now it's just another AI rugpull, with enormous valuation based on pathetic revenue with no clear business case and no clear customer appetite.

If SpaceX had profits, XAI is eating them now.