Hi r/investing,
When SPY first came on the scene in 1993, it was priced around $44 (from what I’ve researched). My question is, how did that number come to be?
I’ve been doing a bit of research into ETF pricing. I understand that ETF prices are determined by their daily NAV (unless I’m mistaken here), but how does the initial figure get decided on? Because an ETF float isn’t capped per se, I’m finding it hard to understand versus a regular stock.
As a sidebar, I’d also love to know how/if this is different to actively managed ETFs like ARKK, for example. How did they set their initial price of around $20 and how does the price get influenced day to day?
Thanks in advance!
Submitted May 03, 2021 at 05:04AM by Johnny_Yukon https://ift.tt/2RkQmw6
