Why So Many People Already Own Shares of Elon Musk’s SpaceX - The New York Times
Even before the rocket company holds a major initial public offering, many people own stock in it through so-called special purpose vehicles.
Elon Musk’s rocket and satellite company is about to hold what could be the largest initial public offering ever, allowing anyone to own its stock after 24 years as a private firm. So why does it seem that so many people already do?
The answer lies in the opaque market for private company shares, driven largely by what are known as special purpose vehicles, or S.P.V.s. These legal entities, which are designed to hold assets like equities, have become a popular way to invest in private company stock as groups of investors can pool money for a single investment.
