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by satellite2 9 days ago
With the change to only five days of being publicly traded requirements, incentivising market makers to keep a high valuation becomes very cheap.

After five days the index funds have to buy at the last price making it final.

In other words even if the vast majority of the market believes it's worth much less, they can force a high price and force basically everyone to hold it via retirement funds.

1 comments

Yes exactly what I said - you can take issue with how it was included, but if inclusion == force then you're also forced to buy Dell, Apple etc.
But Dell Apple etc were included when stronger requirements were in place.

Comforting the passive investor that the market would have had time to react and to force a lower valuation before their inclusion in the index