Brokers Offer SpaceX IPO Allocations To Average Investors

on thursday, Fidelity cut early SpaceX allocation requirement for clients from $500,000 minimum asset holdings balance by 99.996%, to $2,000

but if you sell those shares within two weeks of the IPO, you're banned from trading for at least 6 months and possibly permanently

lol

anyway having a hard time squaring this with the blaring headlines about the ipo being super oversubscribed....be careful out there

this is right, i did not make clear, the ban is for future early allocation

(other brokerages like SoFi, Robinhood, e trade are also banning flippers. the big thing for me is how sharply the asset minimum has dropped)

@MikeIsaac between this, the OpenAI IPO, and Thiel leaving for Argentina (all within a couple of weeks!) one really gets the feeling the tech oligarchs are angling for one last heist before leaving town

@MikeIsaac genuinely curious, what is the implication of this?

@MikeIsaac fwiw this is saying you're banned from getting future IPO allocation, not that you're banned from trading in general

@jeremiahjw @MikeIsaac The IPO is a week away if they're still semi desperately hawking these to individual retail traders it could mean there's way less demand than expected.

@jeremiahjw @MikeIsaac If they're letting you and me buy into the IPO, it's because the rich dudes don't want to.

@MikeIsaac Lol did you see the Islamic etf (basically a s&p 500 etf) that bans like defense contractors etc? Has a better performance than the s&p lmao.

@MikeIsaac ha ha ha oh no

@MikeIsaac You know this is a rule for all ipo’s that fidelity offers. Also, the 500k mark is fake. Most ipos they offer are available to people will less than 500k. That number is just the highest tier

@MikeIsaac I just wonder who'd want to buy this stock at that price. Wait 12 months and then buy it for 90% less

@MikeIsaac if you don't care about future IPO access, this seems like a pretty +EV gamble barring some macroeconomic turmoil around the launch date. i've never cared much about ipos, but i probably would still not mess with that in case i ever do care about them.

@MikeIsaac @paulcerro Isn't 99.6%?

@MikeIsaac There’s a reason all these rules are in place. It’s to maintain trust in fair markets and the firms involved. Fidelity just threw it out the window. For what?

@MikeIsaac what is the point of buying early allocation stock if you aren't going to flip and benefit from volatility lol

@MikeIsaac If it were priced appropriately at IPO who would want to sell it that quickly?

@MikeIsaac @paulcerro @grok would this be legal for them to do in the UK/EU?

@MikeIsaac Haha. Same in Germany. I never heard of having US IPOs on german brokers before, now there are multiple.