States urge Nasdaq and FTSE Russell to rethink SpaceX entry
Business
Investment officials from New York, Illinois, Maryland, and Oregon are urging Nasdaq and FTSE Russell to rethink new rules that make it easier for giant IPOs like SpaceX to join major stock indices.
They are worried SpaceX's massive $75 billion valuation and limited trading history could force passive funds like retirement accounts to invest heavily, risking more market swings and high volatility.
States demand risk assessments and explanations
The states criticized the lowered trading history requirements and questioned whether SpaceX or its advisers influenced these changes.
They have sent letters demanding clear explanations and public risk assessments before such big moves happen.
Their main concern: protecting retirement assets from unexpected instability.