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Direct listing

Also called: direct public offering

In one line

Going public by listing existing shares on an exchange without raising new money or using underwriters.

In plain English

In a direct listing the company's existing shares simply start trading — no new shares, no bankers selling an allocation. Employees and investors can often sell sooner, sometimes without a traditional lock-up.

If you were explaining it to a 5-year-old

The shop opens its doors and lets everyone trade the toys already out there, without making new ones or hiring sellers.

Why it matters when you sell

Direct listings can offer earlier, lock-up-free selling than a classic IPO, changing when you can realise value.

Related terms

Initial public offering (IPO)Lock-up periodLiquidity eventSecondary offering (public)

Put it to use

Sell now vs wait for IPO

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Sources

Primary references for this term: US SEC / Investor.gov. Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.