Last week saw the US Securities and Exchange Commission (SEC) approve the New York Stock Exchange's ( NYSE ) 'direct listing' plan. NASDAQ also wants to offer businesses this option and has filed a similar direct listing proposal with the SEC. The direct listing process allows companies to become public without having to go through the traditional initial public offering (IPO) process. While this ruling benefits companies across all industries, in addition to NYSE's general listing standards, there specifically exists a minimum direct listing requirement in the NYSE. Companies planning on a direct listing are still required to file a prospectus with the SEC and make all SEC-mandated ongoing public company disclosures after the direct listing completion.

Source: Mint December 29, 2020 17:04 UTC