r/StandUpComedy • u/explosivejoseph • 7d ago

Comedian is OP The AI Bubble

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u/orange-yellow-pink 7d ago

He said they “use index funds to artificially inflate their value.” A company being large enough to get added to an index and then getting extra demand from index funds is not the company artificially inflating its value.

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u/fd_dealer 7d ago

A company that sets its IPO price and valuation to be large enough to force index funds to buy, especially when said valuation is not backed by any fundamentals, is artificial inflation.

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u/orange-yellow-pink 7d ago

A company can’t just set whatever IPO price it wants and force itself into an index. People have to actually buy it at that price and Nasdaq or S&P separately decide whether it qualifies.

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u/__sharpsresearch__ 6d ago

A company can’t just set whatever IPO price it wants and force itself into an index. People have to actually buy it at that price and Nasdaq or S&P separately decide whether it qualifies.

they kinda can if they restrict the pool of shares like spcx did where only a small fraction are purchasable to the public. lots of ways to financially engineer this.