> I dont see the average 401k investor investing in IPO's Nor, for that matter, do you see many investors at all getting pre-IPO shares. Most of the small gu

> I dont see the average 401k investor investing in IPO's Nor, for that matter, do you see many investors at all getting pre-IPO shares. Most of the small guys come in after the IPO. The problem is that the 401k's go to funds, who are playing a big game of averages. They buy the S&P +/- some delta. IPOs form the delta for some of the funds. (And all of the money buying the S&P means that valuations in general have gotten quite a bit higher over the timeframe of 401k's, which drives post-IPO valuations, which drives pre-IPO valuations.)