DEVOURED
SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
S&P Dow Jones Indices has rejected calls to shorten its IPO 'seasoning' period, maintaining strict 12-month requirements for companies like SpaceX.
What: Despite industry pressure to accommodate mega-cap IPOs, S&P will not waive its 12-month waiting period or profitability requirements for newly public companies seeking index entry.
Why it matters: This preserves the integrity of stock indices by preventing rapid inclusion of speculative mega-cap firms that have not yet demonstrated long-term market stability.
Decoder
- Seasoning period: The duration a company must be publicly traded before it is eligible for inclusion in an index, designed to filter out short-term price volatility.
Original article
S&P Dow Jones Indices will not shorten its 12-month seasoning period for newly public companies or waive profitability and public-flowed requirements based on a company's size.
Explore all 49 articles in today's digest
Fresh dev news, AI-digested daily. Never miss a trend at devoured.fyi