SpaceX IPO Plan Puts $2.9 Trillion of Listings On The Table (1)

The floodgates could be poised to burst open on Wall Street for $2.9 trillion worth of private companies that have avoided going public for years.

The prospect of a SpaceX IPO, preparing the ground for so-called centicorns valued privately at $100 billion or more, raises a dangerous question for all involved: How eager will stock investors be to embrace companies with controversial leaders, little or no profits and private-market valuations so swollen that they’ll dwarf every company that has previously made its debut on a US exchange?

Short answer: Very.

“The median market cap of an S&P 500 company is ...