Court Cuts Investor Some Slack
In 2018, the New York Stock Exchange introduced a rule, which the SEC approved, authorizing companies to go public through a Selling Shareholder Direct Floor Listing, better known as direct listing. [1] Unlike an initial public offering, a direct listing does not involve an issue of new shares by means of a registration statement. Instead, a company files such a statement “solely for the purpose of allowing existing shareholders to sell their shares” on the exchange.[2] A

