A Direct listing is one method of raising funds. Instead of creating new shares, existing shares are sold to the public. There are no underwriters involved.
When a company decides to go public the existing shareholders and investors can choose to sell their shares to the public. This is less-expensive and helps avoid the lock-in period. They still have to file a registration with the SEC.
Companies that go with the direct listing method still have to comply to all SEC regulations and publish the relevant documents, just like companies that go the IPO route.
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