[themagician]

The thing is that most people don’t know what they are doing.

The 401(k) is the only retirement program we have. At the end of the day when companies go public and then go bust the money is often coming from the collective public in some way.

You are right, it’s a very small detail. But it’s one of those cogs that turn while making the rich richer by extracting value from the public.

The founder of this company is a billionaire. A man that runs a company which makes no money is a billionaire. Where did the money ultimately come from? Who pays the bill? He’s added no value to society by any objective measure, he’s just taken.

[nradov]

In most 401(k) plans the default funds don't invest in IPOs. Most workers and retail investors have no exposure here.

[matthewdgreen]

During the last crash, most 401k investors didn't think they had much exposure to mortgage-backed securities. Turned out they had lots of exposure to companies that held those securities. I don't know how much that's also true with these IPO stocks.

[themagician]

Most don’t. Not directly. But you don’t need most, just enough.