Not a law, that’s just how index funds work. It’s meant to be an un-managed investment fund that tracks some aspect of the market via predefined rules. The S&P500 for instance tracks the top 500 companies by market capitalization (among a bunch of other weird rules), and it does so by purchasing shares in these companies proportionately. So new company appears that meets the criteria -> purchase. The big part of the story here is the fact that all of these index funds changed their rules to include spacex, especially when spacex’s finances look terrible.
Not a law, that’s just how index funds work. It’s meant to be an un-managed investment fund that tracks some aspect of the market via predefined rules. The S&P500 for instance tracks the top 500 companies by market capitalization (among a bunch of other weird rules), and it does so by purchasing shares in these companies proportionately. So new company appears that meets the criteria -> purchase. The big part of the story here is the fact that all of these index funds changed their rules to include spacex, especially when spacex’s finances look terrible.