SEC approves Nasdaq direct listing proposal
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The Securities and Exchange Commission approved a Nasdaq proposal allowing companies to raise capital while also doing direct listings instead of initial public offerings.
Nasdaq initially submitted the proposal in September, but after the SEC expressed concern with it in December, Nasdaq amended the proposal in February, and the SEC approved it in an order dated May 19.
Unlike IPOs, direct listings allow companies to participate in the stock market without selling new shares, and with fewer restrictions and fees.
Prior to approving a similar proposal from the New York Stock Exchange in December, the SEC did not allow companies to raise new capital while going through the direct listing process.
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