A way for a private company to become public by allowing existing shareholders to sell their shares directly on a stock exchange, without the company issuing new shares. Unlike an IPO, the company does not raise new money from this process because no new shares are created. This is a simpler and often cheaper alternative to a traditional IPO.
A successful private company with many employees and early investors chooses a direct listing instead of an IPO. The employees and investors who already own shares can now sell them on the public stock market without the company raising additional capital.
Greater Fool is a free Chrome extension that explains terms like this in place. Highlight a word on any page, click Explain, keep reading.
Add to Chrome (free)