r/stocks
SpaceX allocations were kept small on purpose obviously
Author argues SpaceX kept allocations small to minimize selling pressure and build a broad retail holder base.
- Small allocations prevent large immediate sell-offs by retail investors upon listing or trading.
- Broadens the shareholder base and creates psychological attachment among more retail investors.
those lowball SpaceX allocations were very intentional...
If a lot of people got a meaningful amount of shares (2,000 shares at $135) and the stock goes $165, that is a $60,000 unrealized gain right there in seconds. A lot of people would definitely flip it and sell immediately.
with a tiny 30 shares alloc. then the same $30/share move is only $900 in profit. That is still good, but it is not life-changing enough to trigger the same rush to sell.
By spreading smaller allocations across more holders, you create broader participation, more psychological attachment, and less immediate selling pressure. More people can say they “own SpaceX,” but fewer people have enough size to dump meaningful supply into the market right away.
low allocation was not just because of high demand. It may also have been a deliberate way to create a wide base of small holders while reducing the risk of heavy early selling.
consensus is for every 1000 shares people got around 30-50 shares...