Direct Listing

A direct listing is a method for a company to go public and sell its shares on a stock exchange without the traditional initial public offering (IPO) process. Instead of raising new capital through underwriters, a company allows existing shareholders, such as employees and early investors, to sell their shares directly to the public. This can reduce costs and avoid dilution of ownership. Direct listings are often seen as a way for established companies to become publicly traded while maintaining control over the share price and avoiding the complexities associated with traditional IPOs.