A direct listing is a method used by a company to go public without the traditional process of underwriting and issuing new shares through an initial public offering (IPO). In a direct listing, existing shares are made available for trading on a stock exchange, allowing current shareholders to sell their shares directly to the public without raising new capital. This approach is often seen as a cost-effective alternative for companies that do not need to raise additional funds but want to provide liquidity for their existing shareholders.
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