How SpaceX's arrival impacts the stock market

Summary

Think of Elon Musk's company like a pebble, a big one, thrown into a giant lake of equity — there will be ripples through the public and private markets, and they'll be rippling for a while. "Any large IPO has a gravitational pull to them, so they can have sizable effects on the public markets, on private markets and sectors," Aaron Mulvihill, a strategist at JPMorgan Asset Management. In a typical IPO, a company will offer up about 10%-20% of its shares as its float, Mulvihill says. This was done in part because of the company's high valuation, an IPO of 20% of a $2 trillion company might have been market-disrupting.