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IPOs give way to direct listings — why that’s good for investors

More IPOs will be replaced by direct listings — here's why that’s a good thing for investors

IPOs give way to direct listings — why that’s good for investors
Photo: John Holcroft

The market for initial public offerings has been steady in recent years — disappointing big-name debuts and WeWork’s aborted effort notwithstanding. Now, changes may be coming that could mean more new stocks for investors.

Going public through a direct listing has been revived by Spotify Technology and Slack Technologies. Other private companies are expected to follow them this year, including home-rental matchmaker Airbnb.

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