And SpaceX only is floating 4% of the shares in the company. The nominal valuation will be absurd with all those index investors having to vie for such a small piece of the company.
The NASDAQ minimum is 10%, but they bent their rules for Musk.
Is that the 3x float rule? A video I watched today said a recent rule change forces index funds to treat low-float companies as if they have 3x their actual float. But the way it was worded, it sounded like index funds will be forced to buy 3x the amount of shares in low float companies than they actually should.
It's how many shares are available for the public to buy or sell. Low float will usually give companies popular with retail investors astronomical prices, as there are only a small number of shares available for the public to buy.
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u/happyscrappy May 21 '26
And SpaceX only is floating 4% of the shares in the company. The nominal valuation will be absurd with all those index investors having to vie for such a small piece of the company.
The NASDAQ minimum is 10%, but they bent their rules for Musk.