Analysis

SEC's Direct Listings Expansion Could Invite New Risks

Law360 (January 8, 2021, 6:40 PM EST) -- The U.S. Securities and Exchange Commission's recent expansion of direct listings to allow the raising of capital will likely spur more companies to explore these alternatives to traditional initial public offerings, although such listings also pose certain risks that could limit their appeal.

New York Stock Exchange companies can now sell shares concurrent with a direct listing following a regulatory green light on Dec. 22, and Nasdaq has a similar proposal pending. The SEC's approval effectively broadened the utility of these transactions, which until now have only been used by select companies that didn't need new funding at the time of...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!