• Blue_Morpho@lemmy.world
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    2 days ago

    Most shareholders don’t have a choice. Pension funds and 401k’s are legally required to own a pool of all stocks which forces them to buy Tesla.

    It’s how Musk got to offload his overpriced SpaceX stock onto the public.

    • jaybone@lemmy.zip
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      2 days ago

      They diversify sure. But are they required to have a pool of “all stocks?” (That would be quite a few.) The portfolio managers can choose what to include in the portfolio.

      • Talcosis@lemmy.zip
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        1 day ago

        All 401(k) are legally required to invest in fortune100 stocks.

        That’s why the normal 3 month delay for getting listed as a fortune100 being reduced to 15 days in the case of SpaceX was a bit of a brouhaha.