Anthropic’s backers are hopeful that its IPO will be propelled by so-called forced buyers, including index funds and large asset managers, which do not currently own any of the stock but will in effect be obliged to do so shortly after the company is public.
It depends on the index! “Equal weight in the largest five banks in Lithuania” is an index. “500 large American companies chosen from a list of candidates by a selection committee in NYCt” is an index. “Every company on the Tokyo Stock Exchange” is an index.
Oof
there we go, that was thier plan all along.
Isn’t their debt rating basically junk bind status? If so, they won’t be included in any pension funds
“our IPO will be supported by the people we are forcing to buy it’ is definitely a vote of confidence and not at all ominous
deleted by creator
do IPOs go automatically straight into index funds? i thought they had to be added upon approval
It depends on the index! “Equal weight in the largest five banks in Lithuania” is an index. “500 large American companies chosen from a list of candidates by a selection committee in NYCt” is an index. “Every company on the Tokyo Stock Exchange” is an index.
Typically yes. But when there’s shenanigans involved….
¯\_(ツ)_/¯
I thought some would only do it after a year or so too to prevent these types of shenanigans too.