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by sigmoid10 9 days ago
It's not about the overall long term risk of the company, it's the inherent short term risk of the IPO that will potentially hurt retail investors. Why not have them trade for a while and go to business as usual so things settle down and the index can prevent wild fluctuations? The only ones who might benefit from this rule change are pump-and-dump types.
1 comments
gitfan86 9 days ago
The goal of SP500 is to provide exposure to the 500 biggest companies, not protect shareholders. I think IBM might do poorly when AI destroys their overpriced IT outsourcing business, but that doesn't mean SP500 should kick them out.
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sigmoid10 7 days ago
Again, that's not the issue here. Long-term, these things should absolutely go into the index if they fulfill the size requirement. It's the IPO process that has people worried (and rightly so).
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